Biotechnology firm Genzyme Corp. said Thursday that it was buying Ilex Oncology Inc. for $1 billion in stock to bolster its business of providing drugs to treat cancer.
Genzyme, based in Cambridge, Mass., said it would pay $26 a share to stockholders of San Antonio-based Ilex.
Ilex produces Campath, used to treat leukemia, and two drugs in the late stages of seeking regulatory approval.
The deal, announced after the close of trading, would represent a 22% premium over Ilex's closing price. The shares rose 57 cents to $21.37 on Nasdaq.They jumped $3.88 in extended trading.
Shares of Genzyme rose 5 cents to $53.28 on Nasdaq. They fell $1.94 in the extended session.
Genzyme said the acquisition would reduce its earnings in the short term but add to profits in 2006.