Aegerion Pharmaceuticals Inc. and QLT Inc. announced Wednesday a deal in which Aegerion will be merged with a wholly-owned subsidiary of QLT. The biotechnology companies had a combined market-capitalization of $114.79 million as of Tuesday's closing prices. As part of the deal, each Aegerion share outstanding will be exchanged for 1.0256 shares of QLT. An investor syndicate has committed an investment of $22 million in QLT, and will vote in favor of the merger. Once the merger is completed, which is expected as early as by the end of the third quarter, QLT will change its name to Novelion Therapeutics Inc., with its stock to trade on the Nasdaq Global Select Market as well as the Toronto Stock Exchange. "I believe that this proposed merger represents a fresh start and an opportunity to create significant value, and I look forward to driving our programs forward," said Aegerion Chief Executive Mary Szela. Both stocks were halted for news. Through Tuesday, Aegerion shares had plunged 87% year to date and QLT's stock had tumbled 27%.
Continue Reading Below
Copyright © 2016 MarketWatch, Inc.