Advertise With UsAdvertise on our extensive network of industry websites and newsletters.
Get the PBR newsletterSign up to our free email to get all the latest PBR
news.UK pharmaceutical company Shire has agreed to buy its US partner New River Pharmaceuticals for $2.6 billion, in order to take full control of ADHD drug Vyvanse, which the companies have been developing together.
Subscribe to our email newsletter
Shire will pay $64.00 in cash for each share of NRPH common stock, which represents a 14.4 % premium to New River's most recent four-week average closing price per share of $55.92. New River and Shire expect to close the deal early in the second quarter, subject to Shire shareholders' approval and regulatory approval. Randal Kirk, New River's founder, chairman and CEO, has agreed sell his 50.2% stake of the company.
Vyvanse, which is currently being considered for approval by the FDA, is considered by Shire to be the next generation treatment to Adderall, the ADHD treatment that made the company $864 million in sales in 2006.
Shire CEO Matthew Emmens said: “This acquisition continues our leadership position in the growing US ADHD market, improves our operating margins, significantly enhances our earnings growth from late 2009 and delivers on our overall global growth strategy.”
Shire also said that in order to part-fund the acquisition, it plans to issue 38 million new shares to institutional investors in order to raise approximately $800 million.