April 24 (Reuters) - OPKO Health Inc said it would buy biopharmaceutical company Prolor Biotech Inc in an all-stock deal to expand its portfolio of specialty drugs.
Prolor shareholders will receive 0.9951 shares of OPKO common stock for each Prolor share or $7 dollars per share, which values the deal at $480 million.
The deal represents a 20 percent premium based on Prolor’s Tuesday closing price.
“Prolor’s drug-product candidates for growth hormone deficiency, hemophilia, obesity and diabetes ... are highly valuable assets that will complement OPKO’s strategy,” OPKO Chief Executive Phillip Frost said in a statement on Wednesday.
The companies expect the transaction to close by the second half of 2013.
Barrington Research Associates acted as financial adviser to OPKO Health while Jefferies LLC advised PROLOR.
Shares of Nes Ziona, Israel-based Prolor closed up 4 percent at $5.83 before the deal was announced on the Amex stock exchange on Tuesday.