NEW YORK (TheStreet) -- Furiex Pharmaceuticals (FURX) surged 28.57% to $103.05 at the close of trading on Monday after Forest Laboratories (FRX) announced it would acquire the company for $1.5 billion.
This deal comes more than two months after news that Actavis, based in Ireland, would buy Forest for approximately $25 billion in a deal that should close in mid-2014. Forest said Monday that Actavis agreed to and supports the Furiex acquisition, according to USA Today.
Forest said it would pay approximately $1.1 billion in cash, or $95 per share, for Furiex. and would pay an additional amount of up to approximately $360 million depending on the development of eluxadoline. The drug treats symptoms of diarrhea-predominant irritable bowel syndrome, which affects nearly 28 million people in the U.S. and Europe.
Several law firms subsequently announced investigations into the deal.