Shire PLC (ADR) Eyes BioMarin Pharmaceutical Inc.

  • BioMarin,Shire,SHPG

BioMarin stock has rallied up 5% in extended trading on news that Shire is interested in acquiring the company

Word on the Street is that Shire plc (NASDAQ:SHPG) is about to make a "transformational" acquisition by acquiring US-based BioMarin Pharmaceutical Inc (NASDAQ:BMRN). The news has sent BioMarin stock up 5.3%, to now be valued at $121 apiece.

The speculation that Shire may end up acquiring BioMarin is not ill-founded, especially in light of the fact that the company only recently went on to expand its rare disease drug portfolio through acquiring NPS Pharmaceuticals, Inc. (NASDAQ:NPSP). BioMarin itself specializes in making drugs for rare genetic diseases.

The company reported revenues of $230.9 million in the most recently concluded quarter, marking a growth of 57% on a year-over-year basis. Furthermore, the company’s share price has rallied over 67% in the last 12 months, as investors reward the company for having an expansive pipeline that focuses on rare disorders, which is expected to add to the company’s revenue stream.

Shire, as per sources well informed with the matter, has approached BioMarin with a proposed deal. What remains unclear is, however, how things have progressed after the company expressed interest in acquiring BioMarin.

The BioMarin acquisition will be transformational for Shire given that the company is worth $18 billion, and hence a sizable chunk for Shire to bite off. The company’s current CEO Flemming Ornskov has gone on to sign many major acquisition related deals, however, the BioMarin acquisition will seriously move the needle into the tens of billions category.

Shire will likely have to pay a sizable premium for the acquisition given the upsurge in mergers and acquisitions-related activity in the pharmaceutical sector.

Shire may not be the only company vying to lay its hands on BioMarin, since Switzerland-based Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY) only last year evaluated BioMarin as an acquisition target. Roche Holding eventually ended up buying Intermune Inc (NASDAQ:ITMN) for $7.4 billion. Roche, as per sources close to the matter, may revisit its interest in buying BioMarin now that Shire has taken an active interest in acquiring the business.

BioMarin and Shire both declined to comment on the market rumors.


This link:http://www.chemcd.com/news/12622.html

The ChemCD compiler finishing, shall not be reproduced without permission, for reprint please indicate the source。

comments powered by Disqus

Categories

Related News

Merck Announces FDA Acceptance of Biologics License Application for Bezlotoxumab, an Investigational Antitoxin for Prevention of Clostridium Difficile Infection Recurrence

Merck announced that the U.S. Food and Drug Administration (FDA) has accepted for review the Biologics License Application (BLA) for bezlotoxumab, an investigational antitoxin for prevention of Clostridium difficile (C. difficile) infection recurrence.

Sanofi and Regeneron Announce Sarilumab Biologics License Application Accepted for Review by US FDA

Sanofi and Regeneron Pharmaceuticals, Inc. today announced that the U.S. Food and Drug Administration (FDA) has accepted for review the Biologics License Application (BLA) for sarilumab.

First data backs efficacy of BMS' novel HIV drug

A Bristol-Myers Squibb (BMS) drug that causes immature HIV particles to be released from cells early, interrupting their lifecycle, has cleared a proof-of-concept study.

EU Rules Could Restrict Genetic Testing

Genetic testing describes the application of laboratory methods to look at a person’s genes (the inherited DNA instructions). Genetic tests can be used to diagnose a genetic condition; screen for a risk of developing a particular health problems; for the selection of treatments; or to assess responses to treatments.

CHMP adopts positive opinion of Edurant in adolescents with HIV-1

The CHMP has adopted a positive opinion recommending a change to the terms of the marketing authorisation for Janssen’s Edurant (rilpivirine) in the EU to extend the indication to adolescent patients aged 12 to <18 years with human immunodeficiency virus-1 (HIV-1) infection

FDA finds mystery 'deficiencies' with Neos' long-acting Ritalin on the eve of approval

Neos Therapeutics got an ominous note from the FDA just weeks ahead of the expected approval date for its long-acting ADHD treatment, clouding the future of the company's lead asset.

Pfizer's once-failed cancer drug wins the FDA's 'breakthrough' tag

Pfizer has found new hope for a former pipeline standout, picking up the FDA's coveted breakthrough therapy designation for a Phase III reclamation project in oncology.