Shire Buying SARcode for $160 Million

Shire (NASDAQ: SHPG  ) of Dublin, Ireland, is buying Brisbane, Calif.-based biopharmaceutical startup SARcode Bioscience for $160 million upfront, "plus additional undisclosed payments upon achievement of certain clinical, regulatory, and/or commercial milestones," Shire announced Monday.

With the company comes SARcode's phase 3 compound LIFITEGRAST, which the company hopes to use to treat dry eye disease. Shire thinks that after it buys the company -- and assuming FDA approval, of course -- it could bring this product to market as early as 2016. 

Shire notes that 25 million people suffer from dry eye disease in the U.S., of which 9 million are candidates for prescription drug treatment -- yet only 10% of these actually receive such treatment today.

The company notes also that the acquisition aligns well with its purchase, earlier this month, of Swedish biotech Premacure, which is doing work on another eye-related treatment -- specifically, a prevention for infant retinopathy of prematurity. Shire says it is using acquisitions such as these to target a global ophthalmic pharmaceutical market, valued at approximately $13 billion in 2012 with a compound annual growth rate of 4.5%.

Investors are less enthusiastic. In response to today's news, Shire shares fell 0.1% to close at $90.61.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2330867, ~/Articles/ArticleHandler.aspx, 12/21/2014 12:02:44 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement