BUZZ-Pozen Inc: To acquire Tribute Pharma in inversion deal

Mon Jun 8, 2015 11:53am EDT
 
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** Specialty pharmaceuticals company's shares up 23 pct at $9.31 after agreeing to buy Tribute Pharmaceuticals Canada Inc in a deal that would cut its tax bill

** Shares hit about 14-month high of $9.72

** Tribute's shares touch record high of C$1.62

** Nearly 1.5 mln Pozen shares traded, about 5 times their 25-day moving average

** Says to acquire Tribute for about $144 mln and shift its domicile to Ireland

** Merged company, to be called Aralez Pharmaceuticals Plc, will focus on cardiovascular treatments

** A group of investors including healthcare investment firm Deerfield Management and Canadian biotech company QLT Inc to invest up to $350 mln in growth capital for Aralez

** Latest in a series of politically controversial "inversions", in which U.S. companies can lower tax rates by shifting their domiciles abroad

** Up to Friday's close, Pozen's stock had fallen about 16 pct since Dec. 17, when the FDA rejected the company's lead drug for the second time