NEW YORK (TheStreet) -- Aegerion Pharmaceuticals (AEGR) stock is climbing 31.20% to $1.75 on heavy trading volume on Wednesday afternoon after the biopharmaceutical company agreed to merge with QLT (QLTI).

QLT stock is advancing 6.29% to $1.52, also on heavy trading volume this afternoon.

Each Aegerion share will be traded for 1.0256 shares of QLT common stock in a transaction expected to close by the end of the year.

An investor syndicate, made up of new and existing shareholders of both companies, plans to invest about $22 million in QLT.

The combined company will be called Novelion Therapeutics and will be traded on the NASDAQ Global Select Market and the Toronto Stock Exchange.

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So far today, 10.88 million shares of Aegerion have been traded, compared with its average daily volume of 819,166 shares. About 1.22 million shares of QLT have exchanged hands, significantly above its average daily volume of 90,167 shares.

Separately, Aegerion Pharmaceuticals has a "sell" rating and a letter grade of D at TheStreet Ratings because of the company's feeble earnings per share growth, deteriorating net income, generally high debt management risk, disappointing return on equity and weak operating cash flow.

You can view the full analysis from the report here: AEGR

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. 

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