Shares of DRAXIS Health, Inc. (DRAX), a Toronto, Canada-based provider of specialty pharmaceuticals, jumped nearly 24% to an intraday high of $6.10 Friday after the company announced that will be acquired for approximately $255 million in cash by Indian company Jubilant Organosys, Ltd. Jubilant plans to acquire all the outstanding common shares of DRAXIS for $6 per share.

Jubilant, a drug discovery and development services company, hopes the transaction will help it gain much-needed footing in North America.

“DRAXIS represents a unique opportunity in the North American market, offering Jubilant entry into the attractive, regulated, high growth and high margin radiopharmaceutical business,” Jubilant Chairman Shyam S. Bhartia and Co-Chairman Hari S. Bhartia said. “It also enables Jubilant to consolidate its position in the sterile and non-sterile contract manufacturing business. With this acquisition Jubilant will become one of the leading providers of contract manufacturing of small volume parenterals to large pharmaceuticals and biotech companies in North America.”

DRAXIS directors, who say they hope the transaction will provide resources to accelerate the growth of the company’s business and its customer base, unanimously approved the deal on Friday. Jubilant plans to fund the acquisition, which is expected to close in the second quarter of 2008 through a combination of cash-on-hand and debt. The transaction is not contingent on any financing condition.

DRAXIS, founded in 1987, also develops diagnostic and therapeutic products intended for use in Nuclear Medicine and Oncology in its DRAXIMAGE division.

Let us hear your thoughts below: