Why Zalicus (ZLCS) Stock Is Soaring Today

NEW YORK (TheStreet) -- Zalicus  (ZLCS) soared Wednesday after the biopharmaceutical company announced it would merge with Epirus Biopharmaceuticals

After the all-stock transaction closes, Zalicus will be known as Epirus and will operate under the latter company's management team led by Amit Munshi as president and CEO. Current Zalicus stockholders will own approximately 19% of the company. The merger will create a publicly-traded company listed on the NASDAQ.

"Under the new company structure, we will continue to aggressively advance our pipeline of biosimilars, and address diverse global biosimilar markets through local partnerships," Munshi said in a statement. "Through this transaction, we gain access to additional financial resources as well as clinical trial experience in the rheumatoid arthritis space. Our combined team is committed to expanding patient access to important medications."

Zalicus soared 42.71% to $1.47 at 10:39 a.m. More than 8.1 million shares had changed hands, well above the average volume of 703,340. 

Must Read: Warren Buffett's 10 Favorite Growth Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

ZLCS Chart

ZLCS data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

More from Markets

Trump to Blame for Oil's Recent Surge, Not OPEC

Trump to Blame for Oil's Recent Surge, Not OPEC

3 Things Investors Must Know for Monday

3 Things Investors Must Know for Monday

U.S. Earnings On Pace for Best Season in Two Decades but Tech Giants Await

U.S. Earnings On Pace for Best Season in Two Decades but Tech Giants Await

Alphabet Earnings and 4 Other Business Stories You Must Know Monday Morning

Alphabet Earnings and 4 Other Business Stories You Must Know Monday Morning

Alphabet Earnings, Bond Yields Rise, Akorn Plunges - 5 Things You Must Know

Alphabet Earnings, Bond Yields Rise, Akorn Plunges - 5 Things You Must Know