Shire Buys NPS Pharmaceuticals
Published By : 12 Jan 2015 | Published By : QYRESEARCH
Shire, the U.K. based pharmaceuticals company has entered into a business deal for buying NPS Pharmaceuticals, a U.S. based biotech firm for a value worth US$5.2 billion. Shire is generally known to be a manufacturer of drugs that are used for treating rare and uncommon diseases. As per Shire, this business deal will eventually strengthen its position in the market for medicines for treating rare ailments and diseases. The deal has received approval from the boards of both the firms and this as a result will add to the earnings of Shire from next year. This business deal came through two months after Shire’s takeover deal from AbbVie, a U.S. firm failed to materialize.
Flemming Ornskov, the chief executive at Shire explained that acquiring NPS Pharma has been a major step taken by Shire for becoming one of the leading biotechnology firms in the world. He also stated that this entire deal revolves around treating rare diseases and it fits perfectly within Shire’s franchise and business strategy. The value of a share being paid in cash to NPS by Shire is about US$46. NPS basically specializes in manufacturing drugs for gastrointestinal problems.
This amount shows an increase of about 51% rise in the price of shares of NPS that were being traded on December 16, when the speculation of a potential deal emerged for the very first time.
In the month of October, Shire had stated that it would consider looking at lucrative deals after AbbVie had abandoned its plans of acquiring the UK company.
The interest that AbbVie had for Shire was basically propelled by an opportunity for drastically decreasing its tax bill since it would enable the US based firm to shift the tax base to Jersey, an island wherein corporate taxes are lower.