Axcan to buy Eurand for $583 million

Axcan Holdings has struck a deal to buy Eurand for $583 million. Shareholders are in line for $12 a share, a meager 9.4 percent premium over yesterday's close. "The last several years have seen Eurand evolve" from a licensing and drug developer "into a fully integrated specialty pharmaceutical business with the development and launch of Zenpep," said CEO Gearoid Faherty.

Faherty will remain chairman and CEO of Eurand through the end of 2010. At that time, John Fraher, currently Chief Commercial Officer of Eurand, will become CEO and Malahias will become non-executive chairman.

"After an extended auction process, and in conjunction with its independent financial and legal advisors, the Board of Directors has concluded that this agreement is in the best interests of our shareholders and other stakeholders," said Angelo Malahias, chairman of Eurand's special committee.

- check out the Eurand release
- read the Dow Jones report