Shire Plans US Acquisition For Around $170 Million

Shire Pharmaceuticals of the UK is to acquire a US drug delivery firm,Pharmavene, for up to $170 million. The UK firm intends to raise around L11.5 million ($18.8 million) by way of a placing and open offer of new ordinary shares at a price of 214 pence per share in order to meet a proportion of the initial consideration.

The move is Shire's first strategic step to become a significant international pharmaceutical company, said Rolf Stahel, the firm's chief executive. He said: "Pharmavene's approach to product development complements our own; we both seek to develop products with considerable commercial potential, and to reduce development risk and time to market. With Pharmavene's 11 development projects, Shire's pipeline now totals 30 projects."

Shire will intially pay $25 million in cash and $65 million in new ordinary shares. A further $10 million in cash will be paid upon receipt of a milestone payment from a licensee of Pharmavene, plus further deferred contingent payments capped at $70 million.