UK pharmaceutical company, Shire, is to purchase US firm NPS Pharmaceuticals in a deal worth approximately $5.2bn.
Shire is to acquire all outstanding shares of NPS Pharma for $46 per share in cash, with the firm planning to accelerate the growth of NPS Pharma’s innovative portfolio.
The transaction has been approved unanimously by the Boards of Directors of both Shire and NPS Pharma.
NPS Pharma is a rare disease-focused biopharmaceutical company and its first product, Gattex/Revestive for injection, is approved in the United States and Europe to treat adults with short bowel syndrome (SBS) who are dependent on parenteral support.
NPS Pharma also has a registration phase product, Natpara for the treatment of hypoparathyroidism (HPT), which is an uncommon condition in which the body secretes abnormally low levels of parathyroid hormone.
The $46.00 per share price in the transaction represents a 51% premium to NPS Pharma’s unaffected share price of $30.47 on December 16, 2014.
Shire said it considers NPS Pharma an excellent strategic fit and anticipates enhanced revenue and earnings growth through the acquisition.
In a statement, Shire said the acquisition is to be effected by a tender offer and funded from Shire’s cash resources, as well as existing and new bank facilities.
“The acquisition of NPS Pharma is a significant step in advancing Shire’s strategy to become a leading biotechnology company,” said Shire’s CEO, Flemming Ornskov, MD, MPH.
“With our global strength and expertise in both rare diseases and GI, Shire is uniquely positioned to drive the continued success of Gattex/Revestove, and, if approved, commercialise NPS Pharma’s pipeline compound Natpara.”