Jazz Pharmaceuticals Inc said it will buy privately held Azur Pharma Ltd in stock and form a specialty pharmaceutical company in Ireland, Economic Times reported.

The shareholders of the pharma major would own about 80% of the combined company, while Dublin, Ireland-based Azur Pharma would own slightly over 20%. Jazz said the combined company Jazz Pharmaceuticals Plc is expected to have revenue of over $475 million and generate cash of more than $200 million in the first year.

Meanwhile, the shareholders of Jazz would receive one ordinary share of the combined company, which will trade on NASDAQ, in exchange for each Jazz share held.

Jazz Pharmaceuticals Plc will have 12 drugs in the central nervous system and women’s health areas, which are currently marketed in the United States.

The deal is expected to close in the first quarter of 2012. JP Morgan Securities advised Jazz on the deal, while Azur Pharma was advised by Lazard.

The mission of Jazz Pharmaceuticals is to improve lives of patients by identifying, developing and commercializing valuable pharmaceutical products in focused therapeutic areas.

It has a strategy of building broad therapeutic portfolio through a combination of internal development and acquisition and in-licensing activities to employ a specialty sales force to promote its products in focused speciality audiences, including neurology, psychiatry, rheumatology and pain management.

The aim of Jazz Pharmaceuticals is to form strategic and productive collaborations that advance novel products to patients that need them. Azur Pharma is a privately held pharmaceutical company dedicated to enhancing patients’ lives by developing and marketing pharmaceutical products in specialist therapeutic areas.