Amryt Pharma has agreed to buy US firm Chiasma in an all stock deal that values the US firm at $330m.
The company focuses on the development and commercialisation of treatments for orphan and rare diseases patients.
It said the new combined company will have three on-market commercial products, a global commercial and operational footprint and a significant development pipeline of therapies with the financial flexibility to execute its growth plans.
The deal has been approved and recommended by the boards of both Amryt and Chiasma.
Amryt said the deal is expected to accelerate and diversify its growing revenues, adding that it expects to deliver estimated annual cost synergies of about $50m.
Dr Joe Wiley, chief executive of Amryt, said the company has grown significantly in the past six years.
"This transaction brings together two teams that have a strong track record of execution and passion for developing therapies that can help improve the lives of patients in need," Dr Wiley said.
He said the addition of Chiasma's MYCAPSSA, which was recently launched in the US, to the company's commercial product portfolio represents a strong strategic, operational and commercial fit given the significant call-point overlap that exists across the portfolio.
Amryt also today published its first quarter results and reported that its revenues for the three months of the end of March rose by 8.7% to $48.4m.
The company said the first quarter of 2021 was was extremely busy and it delivered a number of commercial and regulatory successes during the quarter.
It said its two commercial products, metreleptin and lomitapide, continue to deliver solid growth across a host of metrics including revenue, EBITDA growth, cash generation and market expansion.
Its EBITDA increased by 115% compared to the same quarter in 2020, the company added.
"Given the strong performance of the business during the quarter, we are now increasing our revenue guidance for 2021 from $200-$205m to $205 -$210m excluding any potential contribution from the proposed Chiasma transaction, which represents growth of between 12% - 15% on 2020," Dr Joe Wiley said.
