Pharmaceutical firm eyes €2bn Irish purchase alongside a lower tax bill

Salix Pharmaceuticals has agreed to buy the patents to some drugs for gastrointestinal diseases from Cosmo Pharmaceuticals for about $2.7bn (€1.98bn) in stock in a deal that will allow the US company to move to Ireland and lower its tax bill.

Salix, of Raleigh, North Carolina, will merge with an Irish unit of Italy-based Cosmo, the companies said yesterday.

Salix shareholders will own just less than 80% of the combined company, which will be renamed Salix Pharmaceuticals plc, and Cosmo will own the rest.