12th May 2014 11:23
LONDON (Alliance News) - Pharmaceutical giant Shire PLC said Monday it had agreed to acquire Lumena Pharmaceuticals Inc for an upfront cash payment of USD260 million, with a payment of net cash at the closing of the acquisition and milestone payments related to ongoing trials.
Shire said that the acquisition will add to its rare diseases portfolio and is "a perfect combination" with its gastrointestinal business which posted revenues of over USD800 million in 2013.
With the acquisition, Shire will acquire compounds LUM001 for hepatic diseases and LUM002 for the treatment of non-alcoholic steatohepatitis. LUM001 has received orphan drug designation for four potential indications in the US and European Union and is currently in Phase II development.
LUM002 is expected to begin Phase II trials in the second half of 2014.
"We have the resources, the infrastructure and the operating capacity to invest in these new potential growth drivers which add further value to Shire's innovative pipeline," said Chief Executive Flemming Ornskov in a statement.
Shire noted that it does not expect the acquisition to alter its earnings guidance for 2014. At its first quarter results May 1 the company raised its raised its guidance for earnings per share in 2014, now expecting non-GAAP earnings per share growth in the mid-to-high 20% range in 2014. Previously it had guided at a similar level to the 23% growth it saw in 2013.
Shares in Shire were trading up 0.5% at 3,326.00 pence Monday.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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