Morrisville-based Oxygen Biotherapeutics (Nasdaq: OXBT) says it is buying privately held Phyxius Pharma for some $4.8 million in stock and is naming the co-founder and CEO of that company as its chief executive officer.

The news sent OxyBio shares soaring Tuesday. After closing at $1.40 on Monday before the deal was announced, shares opened at $2 and jumped as high as $2.45.

Shares still traded up 50 percent at $2.10 at 11 a.m. in heavy trading with more than 4.3 million changing hands. That’s nearly 30 times the daily average.

For the day, OxyBio finished up 30 percent to close at $1.82, up 42 cents. Some 6.17 million shares were traded.

However, the share price remains far below the 52-week high of $22. Its 52-week low is $1.19.

OxyBio has been directed by an interim CEO since Chris Stern, who also was chairman of the board, was dismissed in August 2011.

The deal also includes the rights to further develop a treatment for cardiac surgery patients that the company says would target an “unmet medical need” worth an estimated $600 million a year in the U.S.

OxyBio is issuing 3.4 million shares to cover the costs of the deal.

John Kelley, co-founder of Phyxius, will join the combined company as its CEO once the deal closes.

Two other Phyxius executives also will join OxyBio. Phyxius launched in 2011.

“Upon closing of this transaction, Oxygen Biotherapeutics will be a Company that has a clear path to commercialization with a Phase 3 [ttesting] asset addressing a $600 million market. With Fast Track status and an agreed study protocol under the Special Protocol Assessment (SPA), we expect we are one trial away from approval,” said Michael Jebsen, the interim CEO and chief financial officer at OxyBio. “This acquisition and management transition is designed to offer us a tremendous opportunity to enhance shareholder value. We are thrilled that an industry veteran of Mr. Kelley’s stature will be taking the helm at Oxygen Biotherapeutics.”

The drug treatment had been licensed by Phyxius from Orion Coropration, a company based in Finald. It has been approved for use in 53 countries.

Called Levosimendan, it is used to treat “acute decompensated heart failure.”

“We look forward to concluding this transaction and swiftly moving forward on our product development path,” Kelley said. “By bringing these specific levosimendan rights with an SPA and Fast Track status to Oxygen Biotherapeutics, we’re creating synergies by building a portfolio of indications for the acute care hospital setting. My team and I have spent much of our careers bringing products through the approval process, generating revenues and building value at other public pharmaceutical companies. We look forward to contributing here at Oxygen Biotherapeutics.”

Kelley has 37 years of experience in the pharmaceutical industry.

Jebsen will remain OxyBio’s CFO. 

Also joining OxyBio will be Doug Randall, head of business and commercial operations at Phyxius, and Douglas Hay, who was head of regulatory affairs at Phyxius. Both men also worked with Kelley at The Medicines Company before joining Phyxius.