11th Jan 2015 17:13
LONDON (Alliance News) - Shire PLC said Sunday it has agreed to acquire the US's NPS Pharmaceuticals Inc for USD46.00 per share in cash, in a deal worth a total of USD5.2 billion.
Shire said this is a 51% premium to NASDAQ-listed NPS's share price of USD30.47 on December 16, 2014. NPS shares closed Friday at USD41.91, down 2.4%.
The Dublin-based pharmaceutical giant said the acquisition has been approved unanimously by the boards of both Shire and NPS Pharmaceuticals.
Shire said it expects the deal to add to non-generally accepted accounting principles earnings per share from 2016 onward. The acquisition will be effected by a tender offer and be funded from Shire's cash resources, as well as existing and new bank facilities.
Shire expects an "enhanced revenue and earnings growth profile." It says the acquisition is an "excellent strategic fit", which strengthens its focus on rare diseases.
Bedminster, New Jersey-based NPS Pharmaceutical's first product, Gattex/Revestive, is approved in the US and Europe for the treatment of short bowel syndrome in adults dependent on parenteral support. It also has a registration phase product, Natpara/Natpar for the treatment of hypoparathyroidism.
Shares in Shire closed Friday at 4,741.00 pence.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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