Jazz to merge with Ireland's Azur

Neurology company Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ) will merge with CNS and women's health company Azur Pharma Ltd. (Dublin, Ireland) in a stock deal announced late Monday. The combined company is expected to have 60 million fully diluted shares outstanding, which would translate to a market cap of $2.6 billion based on Jazz's Monday close of $43.74. Azur shareholders will own slightly more than 20%, or 12 million shares, of the combined company, which would be worth about $525 million. Jazz shareholders will own slightly less than 80% of the combined company.

The combined company will be renamed Jazz Pharmaceuticals plc and be incorporated in Ireland. The company is expected to record annual revenues of more than $475 million from 12 marketed products in the U.S., including Jazz's narcolepsy drug Xyrem sodium oxybate and Azur's pain drug Prialt ziconotide. Azur, which has 10 marketed products, expects net 2011 sales of $95-$100 million. ...