Shire to purchase New River for $2.6B in cash

26 February 2007

UK drugmaker Shire has agreed to acquire the USA's New River Pharmaceuticals for $64 per share, or $2.6 billion in total, in an all-cash transaction unanimously recommended by the boards of both companies. In January 2005, Shire entered into an accord with New River to develop and co-promote NRP104, now known as Vyvanse (lisdexamfetamine dimesylate) for attention-deficit and hyperactivity disorder, before Phase II data were available for the drug. In December 2006, New River received a second approvable letter for the agent from the US Food and Drug Administration and Shire now plans to launch the pediatric indication and file a supplemental New Drug Application for the adult form in the second quarter of the year.

The acquisition of New River will allow Shire to capture the full economic value of Vyvanse, and gain control of its future development and commercialization, which is consistent with its stated focus on the growing ADHD market. It allows the company to progress and benefit from its successful strategy of developing and marketing specialty products, as well as gain access to New River's pipeline which includes NRP290, for acute pain, and NRP409, a replacement or supplemental therapy in patients with primary hypothyroidism and other indications.

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