Jazz and Orphan to merge

Jazz Pharmaceuticals, from Palo Alto, CA, and Orphan Medical have entered into an agreement and plan of merger pursuant to which Jazz Pharmaceuticals, through a wholly owned subsidiary, will acquire Orphan Medical.

Under the agreement Orphan Medical stockholders will receive $10.75 per share in cash upon the close of the transaction. Following the merger, Orphan Medical will become a wholly owned subsidiary of Jazz Pharmaceuticals, a privately held company.

Dr Samuel Saks, chief executive officer of Jazz Pharmaceuticals said: 'We are excited about the opportunity to expand our franchise in neurology and psychiatry through this transaction, as part of our mission of developing and commercialising valuable pharmaceutical products that improve patients' lives.'

'We believe the Jazz Pharmaceuticals transaction represents a fair and equitable transaction for Orphan shareholders, especially in light of the resources required during the next stages of growth, were Orphan Medical to remain independent,' said John Bullion, Orphan Medical's chairman and chief executive officer. 'There have been remarkable synergies between our two teams in our discussions, as well as a strong sense of the strategic fit between our companies. We are enthusiastic about the opportunity to combine Orphan Medical's development and commercial capabilities with those of Jazz Pharmaceuticals.'

With a strong pipeline of programs in various stages of development, ranging from Phase III clinical evaluation to early feasibility, Jazz Pharmaceuticals is focused on the development and commercialisation of unique, value-added pharmaceutical products that address unmet clinical needs in neurology and psychiatry. Orphan Medical's lead product is Xyrem, the first and only treatment for cataplexy associated with narcolepsy.

Xyrem is currently being assessed as a treatment for the full range of narcolepsy symptoms, including excessive daytime sleepiness, and a supplemental New Drug Application (sNDA) is under review by the FDA. Orphan Medical is also conducting a trial to evaluate Xyrem as a treatment for symptoms of fibromyalgia syndrome.

'Orphan Medical provides Jazz Pharmaceuticals with a great platform for the launch of our commercial efforts, with an experienced specialty sales force and established relationships with neurologists and psychiatrists,' said Robert Myers, chief business officer of Jazz Pharmaceuticals. 'This company is a strong addition to our pharmaceutical portfolio, and positions us well to acquire additional commercial and development-stage products.'