The London-listed pharma firm buys a rival specialising in rare diseases, just months after it was subject to a takeover itself
Shire, the UK-listed pharmaceuticals firm, has bought a US rival for $5.2bn (£3.4bn) in order to grow its business, particularly in the treatment of rare diseases.
The board of New Jersey-based NPS Pharmaceuticals had unanimously approved the merger, Shire said, two months after saying it would look at acquisitions following the failed takeover of Shire by AbbVie.
Under the terms of the deal, Shire will acquire all the outstanding shares of NPS Pharma for $46-per-share in cash – representing a 51% premium on its current price.
The Dublin-based company said: “Shire will accelerate the growth of NPS Pharma’s innovative portfolio through its market expertise in gastrointestinal (GI) disorders, core capabilities in rare disease patient management, and global footprint.”
NPS, which is loss-making in its current financial year, has a product called Revestive approved in the US and Europe to treat adults with short bowel syndrome – a drug that seemingly helped attract Shire.
Shire chief executive Flemming Ornskov added: “The acquisition of NPS Pharma is a significant step in advancing Shire’s strategy to become a leading biotechnology company.
With our global strength and expertise in both rare diseases and GI (gastrointestinal), Shire is uniquely positioned to drive the continued success of Revestive and, if approved, commercialise NPS Pharma’s pipeline compound Natpar.
“We look forward to accelerating the growth of the NPS Pharma portfolio based on our proven track record of maximising value from acquired assets and commercial execution.
Francois Nader, the chief executive of NPS Pharma, stated: “Shire shares NPS Pharma’s commitment to patients with rare diseases.
“We believe that joining our two companies will drive value for shareholders and ensure we continue to transform the lives of patients with short bowel syndrome, hypoparathyroidism, and autosomal dominant hypocalcemia worldwide.
“I am confident that this transaction will accelerate our ambition of creating a world where every person living with a rare disease has a therapy.”
Source : Sky News