Shire To Acquire NPS Pharmaceuticals For $5.2 Bln

(RTTNews) - Irish drug company Shire Plc (SHP.L, SHPG) has agreed to buy NPS Pharmaceuticals Inc. (NPSP) and its portfolio of rare diseases drug for about $5.2 billion.

Dublin, Ireland-based Shire has agreed to pay $46 per share in cash for each NPS share. The offer represents a 51 percent premium over NPS's closing share price on December 16 and about 10 percent premium to NPS's closing share price on January 9.

The acquisition is expected to close in the first quarter of 2015, pending customary closing conditions. Shire expects the deal to be accretive to its adjusted earnings from 2016 onward.

NPS Pharma is a rare disease-focused biopharmaceutical company and its first product, Gattex is approved in the US and Europe to treat adults with short bowel syndrome.

Shire's Chief Executive Flemming Ornskov said. "The acquisition of NPS Pharma is a significant step in advancing Shire's strategy to become a leading biotechnology company. With our global strength and expertise in both rare diseases and GI, Shire is uniquely positioned to drive the continued success of Gattex/Revestive, and, if approved, commercialize NPS Pharma's pipeline compound Natpara/Natpar."

In December, Bloomberg had reported that Shire was considering a bid for NPS, citing people familiar with the matter. The report had indicated the the deal could depend on whether the U.S. Food and Drug Administration approves NPS's Natpara, a drug to treat hypoparathyroidism that if authorized would be the first marketed treatment for the potentially fatal disorder. The decision is scheduled to made on January 24.

SHPG closed Friday's trading at $217.49, up $3.40 or 1.59%, on the Nasdaq. NPSP closed Friday's trading at $41.91, down $1.01 or 2.35%, on the Nasdaq. The stock, however, gained $0.11 or 0.26% in the after-hours trade.