Today's offer from European pharma Norgine to buy Merus Labs (TSX:MSL, Nasdaq:MSLI) for $1.65 a share is a fair one for shareholders, says Mackie Research Capital analyst Andr\u00e9 Uddin. This morning, Merus Labs announced it had entered into a definitive agreement that will see Norgine acquire the company for a total value of approximately $342-million. "After a comprehensive review of strategic alternatives, and consultation with the company's financial and legal advisers and the special committee of independent directors, our board has unanimously concluded that this transaction is in the best interests of the company and our stakeholders," said Merus chairman Michael Cloutier. "We are pleased that this transaction appropriately recognizes the value of Merus's stable legacy product portfolio and strong cash flow." Uddin, who notes that he had a "Hold" recommendation and a one-year price target of $1.10 on Merus Labs, says he thinks this deal is a good one. "We believe Merus shareholders should vote in FAVOR of the acquisition and TENDER their shares to Norgine B.V.," said the analyst today in a research update to clients. "At a purchase price of $1.65\/share, MSL shareholders receive a 63.4% premium to the closing price of $1.01 on the TSX on May 10, 2017 and a premium of 55.1% over the 30 -day volume weighted average price of $1.06 on the TSX. We believe the premium is more than fair and representative of its portfolio legacy assets."