Why Impax Laboratories Inc Is Tanking Today

After confirming that it will be merging with a privately held drug manufacturer, shares of Impax Laboratories (NASDAQ: IPXL), a maker of generic and branded drugs, fell 10% as of 12:00 p.m. EDT on Tuesday.

Amneal Pharmaceuticals and Impax Laboratories confirmed today that they are joining forces. Once the all-stock transaction is complete, Amneal's shareholders will own approximately 75% of the newly formed company, and Impax shareholders will own approximately 25%.

As expected, the management teams of both companies provided shareholders with a list of reasons why this deal makes sense, including:

Source: Fool.com