Shire keeps acquisition train rolling with $70M Meritage Pharma deal
- Shire has struck a $70 million deal to acquire Meritage Pharma. The acquisition gives Shire a phase 3 treatment, Oral Budesonide Suspension, for treatment of a rare GI disorder.
- The GI disorder is known as eosinophilic esophagitis (EoE), a chronic, inflammatory disease.
- Acquisition of Meritage is also part of a larger strategy for Shire in which the company plans to acquire more firms to continue to build its rare disease portfolio, aiming for $10 billion in sales per year by 2020.
At this point what once seemed like a really ambitious goal—$10 billion a year by 2020—is closer to becoming a reality as Shire acquires one company after another, carefully taking into consideration the role of synergism.
The most recent deal involving Meritage was preceded a little over a month ago by the acquisition of NPS Pharmaceuticals for $5.2 billion. The company's growth strategy seems to be working as it combines the strength of its top-selling drugs, including Vyvanse, with drugs like Natpara, which came into the fold as a result of acquisition.
Although Shire is not changing earnings forecasts for 2015 based on the Meritage acquisition, growth forecasts are already strong and range from roughly 5% to 9%.
- Pharma Times Shire buys Meritage Pharma for $70m