Posted April 18, 2018 11:18:03The pharmaceutical company Ferring has hit record highs for its stock after it said its stock was up 10% on Thursday morning after it announced that it had acquired a majority stake in the medical device maker.
The announcement came after Ferring said it was investing $1 billion in Acelrx, a pharmaceutical company that it acquired for $1.2 billion in December 2016.
“Acelrx is the only drug on the market that is a potential cure for Parkinson’s disease and we have a tremendous amount of research in this area,” Ferring CEO John Kavanagh said in a statement on Thursday.
“We believe this combination will help us better understand and address the disease, and that this combination may be the next great step in the path to a cure for this debilitating disease.”
Acelrayx is developing a new type of Parkinson’s treatment that works on different parts of the brain, rather than just the motor cortex.
The company said the combined company will have a revenue of $15 billion by 2020.
Shares of Ferring jumped almost 6% to $11.65 on Thursday, with the Nasdaq rising more than 1%.
Ferring said the deal will be completed by the end of May.
Ferring is owned by the American Medical Association, the American Society of Neurological Surgeons, and the Pharmaceutical Research and Manufacturers of America.
The company said it expects the deal to generate additional revenues of between $15 million and $25 million annually by 2020 and generate a total of more than $20 billion by then.