Shire to Acquire NPS Pharmaceuticals for $5.2B - Analyst Blog - NASDAQ.com
`
`Back to Main
`Shire to Acquire NPS Pharmaceuticals for
` $5.2B - Analyst Blog
`By: Zacks.com
`Posted: 1/12/2015 5:48:00 PM
`Referenced Stocks: HPT;SHPG;NPSP;BIOD;ABBV
`
`In a move to further strengthen its rare disease portfolio, Shire plc ( SHPG ) announced that it will
` acquire NPS Pharmaceuticals, Inc ( NPSP ), a biopharmaceutical company focused on rare
` diseases, for $46.00 per share or approximately $5.2 billion in total.
`
`The offered price of $46.00 per share represents a 51% premium to NPS Pharma's share price of
` $30.47 on Dec 16, 2014. The closing of the transaction is expected in the first quarter of 2015.
`
`The Acquisition's Strategic Fit to Shire's Portfolio
`
`The Boards of Directors of both the companies have approved the transaction. NPS Pharma's sole
` marketed drug Gattex, a subcutaneous injection, is approved in the U.S. and the EU (European
` trade name: Revestive) for treating adults with short bowel syndrome, dependent on parenteral
` support.
`
`The drug enjoys orphan drug status in the U.S. and generated sales of $67.9 million in the nine
` months ending Sep 30, 2014. Addition of this product to Shire's portfolio will further strengthen its
` gastrointestinal (GI) franchise.
`
`NPS Pharma has a late-stage product in its pipeline - Natpara (rhPTH [1-84]) which is being
` evaluated for the treatment of hypoparathyroidism (HPT). The candidate is currently under review
`in the U.S. with an FDA PDUFA action date for the Biologics License Application set on Jan 24,
` 2015. It is also under review in the EU. Upon approval, the product would be the only
` bioengineered hormone replacement therapy for use in the treatment of HPT, a rare endocrine
` disease.
`
`Shire expects the acquisition to be accretive to the bottom line from 2016 onwards. Shire also
` expects to realize operating synergies beginning in 2016 and growing substantially thereafter.
`
`Our Take
`
`Shire currently carries a Zacks Rank #1 (Strong Buy). We are encouraged by Shire's efforts to
` boost its rare disease portfolio. Shire had repositioned its business in 2013, undertaking a
`realignment program with strategic focus on rare diseases and greater operational discipline. The
` acquisition of erstwhile ViroPharma in 2014 was a step in the same direction, which added
`Cinryze to its portfolio.
`
`With AbbVie ( ABBV ) terminating its acquisition offer in Oct 2014, we expect Shire to focus on its
`CFAD Exhibit 1054
` existing drugs and pipeline. We believe that the NPS Pharma acquisition will boost Shire's
`CFAD v. NPS
`IPR2015-01093
`http://www.nasdaq.com/aspx/stockmarketnewsstoryprint.aspx?storyid=shire-to-acquire-nps-pharmaceuticals-for-52b-analyst-blog-cm432089[3/22/2016 4:05:35 PM]
`
`

`

`Shire to Acquire NPS Pharmaceuticals for $5.2B - Analyst Blog - NASDAQ.com
`
` revenues and complement the company's GI portfolio. The rumors of the acquisition had surfaced
`last month, following which the share prices of both companies had shot up.
`
`NPS Pharma currently carries a Zacks Rank #4 (Sell). Right now, Biodel Inc. ( BIOD ) also looks
` attractive with the same rank as Shire.
`
`Want the latest recommendations from Zacks Investment Research? Today, you can download 7
` Best Stocks for the Next 30 Days. Click to get this free report
`
`SHIRE PLC-ADR (SHPG): Free Stock Analysis Report
`
`NPS PHARMA INC (NPSP): Free Stock Analysis Report
`
`BIODEL INC (BIOD): Free Stock Analysis Report
`
`ABBVIE INC (ABBV): Free Stock Analysis Report
`
`To read this article on Zacks.com click here.
`
`Zacks Investment Research
`
`http://www.nasdaq.com/aspx/stockmarketnewsstoryprint.aspx?storyid=shire-to-acquire-nps-pharmaceuticals-for-52b-analyst-blog-cm432089[3/22/2016 4:05:35 PM]
`
`