Shire to buy NPS Pharma for $5.2bn
Pharmaceuticals giant is set to acquire US-based NPS Pharmaceuticals and strengthen its position in the biotech market
Shire's purchase of US biotech firm NPS Pharmaceuticals signals its desire to develop medicines for rare diseases, and to increase its focus on gastrointestinal (GI) disorders among other things
Irish-based biopharmaceuticals company Shire has announced that it has entered into a merger agreement with US biotech firm NPS Pharmaceuticals in a bid to boost its competencies in developing medicines for rare diseases. Shire will acquire all of NPS Pharma’s outstanding shares for $46 each, paid for in cash, which brings the total value of the deal to approximately $5.2bn.
The deal marks the first major acquisition of 2015
“The acquisition of NPS Pharma is a significant step in advancing Shire’s strategy to become a leading biotechnology company”, wrote Shire’s Chief Executive Officer, Flemming Ornskov in a statement. “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. The NPS Pharma organisation will be a welcome addition to Shire as we continue to help transform the lives of patients with rare diseases.”
Shire’s focus going forward will fall on gastrointestinal (GI) disorders, core capabilities in rare disease patient management and global footprint, which are all areas in which the acquisition of NPS Pharma will enhance. “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,” said Francois Nader, President, CEO and Director of NPS Pharma in a statement.
The deal follows a failed merger in October, after a crackdown on corporate tax avoidance meant that AbbVie’s proposed takeover would no longer come with the same degree of tax benefits. The break fee of $1.6bn, awarded by AbbVie, also meant that Shire was in a better position to strengthen its operations. The deal marks the first major acquisition of 2015 and likely the first of many, as the UK firm looks to expand its operations and tighten its grasp on the biotech market.
