April 26, 2012 / 9:36 PM / 8 years ago

UPDATE 1-Jazz Pharma enters oncology with EUSA Pharma buy

* Deal for $650 mln in cash, $50 mln milestone payment

* Buy to add $0.75-$0.85 to 2013 EPS, $210 mln-$230 mln to 2013 rev

* Co adds first cancer product to portfolio

* Shares up as much as 13 percent in extended trade

April 26 (Reuters) - Jazz Pharmaceuticals Plc said it would buy EUSA Pharma for about $700 million to gain access to the private company’s enzyme treatment for a kind of cancer, sending its shares up 13 percent in extended trade.

The deal includes $650 million cash payment and $50 million milestone payment, if EUSA’s treatment Erwinaze achieves certain sales milestones.

Erwinaze works by blocking cell growth in patients with acute leukemia by cutting down asparagine levels in the bloodstream. Asparagine, an amino acid, is essential for cell growth.

The cancer treatment was approved by the U.S. Food and Drug Administration in November 2011.

Jazz Pharma currently develops products to treat narcolepsy, pain and women’s health.

Ireland-based Jazz Pharma intends to fund the deal, which it expects to add 75 cents to 85 cents per share in 2013, with cash on hand and $500 million in financing from Barclays Bank Plc.

The deal is expected to bring in additional revenue of $210 million to $230 million for Jazz Pharma in 2013.

Shares of Jazz Pharma, which have remained nearly flat over the last three months, were up 13 percent at $50.99 in extended trade. They closed at $45.20 on Thursday on the Nasdaq.

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