Stiefel Laboratories will buy drug company Barrier Therapeutics (BTRX) in a deal valued at about $148 million, combining the companies' dermatological products portfolio, sending Barrier shares up 129%.

Privately held Stiefel will pay $4.15 a share in cash, representing 136% premium to Barrier's closing price of $1.76 on Friday.

"This strategic move will further expand our oral and topical product portfolio in development and increase our sales of novel treatments for skin conditions," Charles Stiefel, chief executive officer of Stiefel Laboratories said in a statement.

Barrier Therapeutics currently markets three pharmaceutical products and has other product candidates in various stages of development for the treatment of dermatological conditions.

The companies expect the deal to close by the end of the third quarter of 2008.