Shire, the Irish-headquartered drugmaker, has made its biggest ever acquisition with a $5.2 billion deal for US biotechnology company NPS Pharmaceuticals, as the FTSE-100 group looks to build its pipeline of standalone speciality drugs.
The move comes just three months after Shire’s proposed $54 billion sale to larger US rival AbbVie collapsed soon after the US government moved to limit the tax advantages of takeovers in which an acquirer seeks to use the transaction to redomicile its tax base outside the US.
51 per cent premium
Shire will pay $46 a share for New Jersey-based NPS, a 51 per cent premium to its share price on December 16th when news of Shire’s interest resurfaced. It was first reported that Shire was considering a takeover in May, but those plans were sidelined after it emerged that AbbVie was pursuing Shire.
Lossmaking NPS specialises in rare treatments and has one drug approved in the US, Germany and Sweden to treat Short Bowel Syndrome, a gastrointestinal disorder.
It is also seeking approval for hormone replacement therapy that can be used to treat hypo- parathyroidism, a rare disease affecting the endocrine system.
It is being reviewed by US health regulators with a possible decision this month. If approved, analysts have said it would significantly bolster the value of NPS.
Flemming Ornskov, Shire chief executive, said: “Based on what we saw in the regulatory filings and with the correspondence with the FDA, we feel confident that it’s a risk worth taking. What was absolutely key for us was to get in as early as possible. If all goes well, the deal could close in the first quarter.”
Advance Shire’s strategy
He added that the deal would help advance Shire’s strategy of becoming a leading biotechnology company. The move adds to the deluge of large transactions taking place in the pharmaceutical sector as drugmakers look for fresh sources of growth after the expiry of patents. – © 2015 The Financial Times Ltd.
