Tercica agrees to be acquired by drug maker Ipsen

Biopharmaceutical company Tercica Inc. Wednesday said it agreed to be acquired by French drug maker Ipsen SA in a cash transaction valuing Tercica at $663 million.

Tercica said that its board of directors had agreed to the deal, in which Ipsen will acquire all shares of Tercica common stock it does not already own at $9 per share, a premium of 104 percent over Tercica's Wednesday closing price of $4.41.

Ipsen currently owns 25.3 percent of Tercica common stock. However, the French company will convert Tercica convertible notes it has, giving it ownership of 42.7 percent of Tercica stock.

Ipsen said it will finance the deal through existing financial resources and loans.

The transaction is subject to approval by Tercica shareholders as well as antitrust approval from the Justice Department and Federal Trade Commission.

Tercica currently markets two products, the growth hormone deficiency treatment Increlex and Somatuline Depot, a treatment for acromegaly, a hormone disorder that can make the feet, hands, nose and mouth grow to unusually large sizes.

Tercica shares rose $4.34, or 98 percent, to $8.75 in premarket trading.