BUZZ-Aralez Pharmaceuticals Inc: To buy AstraZeneca drug's U.S. rights

Tue Oct 4, 2016 9:22am EDT
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** Canadian specialty pharmaceutical's U.S.-listed shares up 12.9 pct at $5.71 premarket, set to open at over 1- month high

** Company to buy U.S. rights of AstraZeneca Plc's old beta-blocker heart drug, Toprol-XL

** "With this deal, (Aralez) should be profitable on an adjusted EBITDA basis in 2017 and we had not expected profitability until 2020," Guggenheim analysts write

** Aralez to pay $175 mln upfront to buy U.S. rights to Toprol-XL tablets and up to $48 mln in milestone and sales-related payments, as well as mid-teen percentage royalties on sales

** Aralez expects deal to immediately add to adjusted EBITDA

** Up to Monday's close, stock lost more than a quarter of its value YTD