Pharma BD Deal Intelligence
Shire bought a royalty annuity, not the pipeline engine it paid for — and abandoned BioChem's anti-infectives business within 4 years
Full analysis, sources & comparables →The news sent Shire's shares tumbling 14 per cent... Shire's investors are concerned about share dilution. There are also some concerns about BioChem's track…
Creates one of the world's leading global specialty pharmaceutical companies... with opportunities for synergies, is expected to be accretive to Shire's…
BioChem shareholders received a 39.6% premium and shares rose 11% on news; Shire stock fell 16%, though analysts viewed the dip as 'a good buying opportunity.'
Source summaries from our enrichment pipeline; follow links for originals.
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All-share merger announced Dec 2000; closed May 2001. ~$4B fully-diluted ($5.9B at announce). Canadian biotech; 3TC (lamivudine) royalties from GSK.
Shire bought a royalty annuity, not the pipeline engine it paid for — and abandoned BioChem's anti-infectives business within 4 years
Assessment window: 15yr post-close.
| Deal | Year | Value | Outcome |
|---|---|---|---|
| Shire Pharmaceuticals Group plc / BioChem Pharma Inc. (this deal) | 2001 | $4.0B | 33 |
| Shire Pharmaceuticals Group plc / Transkaryotic Therapies, Inc. (TKT) | 2005 | $1.6B | 72 |
| Abbott Laboratories / Knoll Pharmaceutical Company (BASF Pharma) | 2001 | $6.9B | 100 |
| Vertex Pharmaceuticals Incorporated / Aurora Biosciences Corporation | 2001 | $592M | 95 |
| Amgen Inc. / Immunex Corporation | 2001 | $16.0B | 91 |
| Swedish Orphan Biovitrum AB / Biovitrum | 2001 | $493M | 84 |
| Barr Laboratories Inc. / Duramed Pharmaceuticals Inc. | 2001 | $589M | 82 |
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