Shire Plc has announced the takeover of NPS Pharmaceuticals Inc under USD 5.2 billion deal in an attempt to strengthen its position in the money-spinning medicines field for rare diseases.
This merger deal marks the biggest acquisition yet by the Dublin-based drugmaker Shire Plc.
Flemming Ornskov, Shire chief executive officials, said that he will be keeping a close eye on more deals in a bid to grow the firm into a biotech powerhouse.
According to the two companies, Shire will be paying NPS Pharma USD 46.00 per share, representing a premium of about 10 percent to the NPS close on Friday.
The merger between the two companies does not come as a huge surprise for the market watchers as Shire had been associated with NPS since May 2014.
Shire is expecting the all-cash agreement to add to its adjusted earnings from 2016 onward. The company believes making cost savings of around 25-35 percent of consensus forecasts for the standalone future operating cost base of NPS from 2017.
New Jersey-based NPS’ acquisition will offer Shire two important new drugs—Gattex (which is already in the market) and Natpara (which awaits approval from the US Food and Drug Administration (FDA)).
While Gattex will treat short-bowel syndrome, Natpara will cure hypoparathyroidism.
Meanwhile, the consensus analysts have made the forecast for the two medicines point to annual sales of USD 509 million and USD 534 million respectively by the year 2019.