Shire to Acquire NPS Pharma as Further Step in Building a Leading Biotech

Dublin-based Shire has agreed to use its AbbVie breakup fee to acquire rare disease drugmaker NPS Pharmaceuticals, Inc.

The companies announced that they have entered into a merger agreement, under which Shire will acquire all the outstanding shares of NPS Pharma for $46 per share in cash, for a total consideration of approximately $5.2 billion. The deal strengthens Shires business in rare diseases.

Shire was first linked to NPS last May, however in July, Shire agreed to be acquired by US-based AbbVie, in a deal worth $55 billion. Last fall, the deal fell through after the Treasury Department announced new rules targeting companies trying to strike inversions deals, allowing US companies to reincorporate their businesses overseas. Since AbbVie decided to break the deal, it was required to pay Shire $1.6 billion in cash.

Shire’s acquisition of NPS will provide the company with two new drugs: Gattex, a treatment for short-bowel syndrome (SBS), and Natpara, a drug awaiting FDA-approval for treatment of hypoparathyroidism. The FDA is expected to make a decision on whether to approve Natpara by January 24.

“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, Shire is uniquely positioned to drive the continued success of Gattex/Revestive, and, if approved, commercialize NPS Pharma’s pipeline compound Natpara/Natpar,” said Shire’s Chief Executive Officer, Flemming Ornskov, MD, MPH.

Francois Nadar, MD, President, Chief Executive Officer and Director of NPS Pharma, said, “We look forward to accelerating the growth of the NPS Pharma portfolio based on our proven track record of maximizing value from acquired assets and commercial execution. The NPS Pharma organization will be a welcome addition to Shire will be a welcome addition to Shire as we continue to help transform the lives of patients with rare diseases.”

Source: Shire

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published.