The latest big biotech merger is sending this stock up 125%

We’ve got the the latest massive biotech merger.

Alexion Pharma announced Wednesday that it is buying Synageva BioPharma for $US8.4 billion.

The deal includes $US115 in cash of 0.6581 shares, which implies a total value of $US225.92 per share, according to Reuters. That’s nearly 136% more than Synageva’s closing price on Tuesday.

In pre-market trade on Wednesday, Synageva shares jumped by more than 125%.

Alexion shares fell by nearly 3%.

In a statement, Alexion said the deal would help it create a larger portfolio of drugs for rare diseases.

“Synageva is an ideal strategic and operational fit for Alexion that aligns with what we know well and do well — providing life-transforming therapies to an increasing number of patients with devastating and rare diseases,” said Alexion CEO David Hallal.

“Alexion is uniquely suited to advance Synageva’s mission to deliver life-saving therapies to patients whose diseases were once considered too rare for developing treatments,” said Synageva CEO Sanj K. Patel.

It’s been a huge year for biotech mergers.

NOW WATCH: Mark Cuban’s 12 rules for starting your own business

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.