NEW YORK (TheStreet) -- Shares of Tekmira Pharmaceuticals (TKMR) soared 46.27% to $22.97 in morning trading Monday after the company agreed to acquire OnCore Biopharma to shift focus to developing hepatitis B virus treatments by merging several therapeutic methods.
The implied market value of the new merged company is approximately $750 million, based on Tekmira's closing price of $15.70 on Friday, the companies said in a statement.
The merger will make Pennsylvania-based OnCore a wholly-owned subsidiary of the Canadian pharmaceutical company. Upon the deal's closing, OnCore's shareholders will hold approximately 50% of the total outstanding shares of Tekmira.
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Tekmira CEO Mark Murray will remain in that position for the merged company, while Chairman Daniel Kisner will become vice chairman. OnCore Chairman Vivek Ramaswamy will serve as chairman of the combined company.
Tekmira also announced it would continue its oncology and anti-viral programs, including Ebola.
More than 3.5 million shares had changed hands as of 9:45 a.m., compared to the daily average volume of 1,121,430.