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Shire bags Viropharma
12.11.2013 - Shire plc gets a foothold in the orphan drug business by swallowing
US company ViroPharma for US$4.2bn.
According to the merger agreement, Shire will acquire all the outstanding shares of the rare disease company for US$50 per share in cash, a 27% premium to ViroPharma's share price on the last trading day before the announcement. Shire stated tha the acquisition would complement its existing orphan disease portfolio. ViroPharma has marketed the human C1 esterase blocker CINRYZE for the prophylactic treatment of Hereditary Angioedema (HAE) since 2008. Shire already markets the bradikinin blocker Firazyr (icatibant) for treatment of acute HAE attacks. Another recombinant C1 esterase blocker, dubbed Ruconest, has been developed by Pharming Group NV and is marketed by Swedish Orphan Biovitrim in Europe.
Because the hereditary disorder only affects approximately one in 10,000-50,000 people, the price for the enzyme replacement therapy is high, approx US$350k annually per patient. Analysts at Morgan Stanley said that, for Shire, the deal "cements strategy" and it could bolster earnings per share by 5-10% in 2014-2016.
"The acquisition of ViroPharma will immediately benefit Shire and is entirely consistent with our clear strategic objective of strengthening our rare disease portfolio," said Shire CEO, Flemming Ornskov. "It brings us a new growth-driving product which augments our already strong growth prospects. ViroPharma generated total worldwide net revenues of US$428 million in 2012 and this is forecast by ViroPharma to rise to between US$445 and US$465 million in 2013.
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