Shares of Horizon Pharma (HZNP) were up 10% pre-market after the company announced that it will acquire drug maker Hyperion Therapeutics (HPTX) for $955.7 million in a cash and debt deal. The offer for Horizon to buy Hyperion is for $46 per share which is a 7.6% premium over the close of Hyperion's share price at $42.74 per share this past Friday. 

The two drugs that will be added to Horizon are Ravicti and Buphenyl, which both treat patients with Urea Cycle Disorder that affects about 2,100 people in the United States. The urea cycle consists of a few steps necessary for the patient's body to survive. Nitrogen is a waste product of the protein metabolism that is removed from the blood and converted to urea in the bloodstream. Normally a patient's body is able to transfer urea to the urine and then it is ultimately removed from the body. The problem with patients with Urea Cycle disorder is that they develop some buildup of nitrogen in the body as ammonia. Ammonia is highly toxic and leads to serious complications such as coma, irreversible brain damage, and death. 

Both Ravicti and Buphenyl have done pretty well on the market. Ravicti made $30.8 million and Buphenyl made $113.6 million in 2014, respectively. With this deal Horizon will now have seven products in its pipeline instead of five. The company expects that the addition of these two drugs will bring in about $100 million or more in revenue in 2016. Horizon hit a 52-week high today at $25.78 per share and we expect the share price to continue to climb over the next few days.