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Mergers and Acquisitions

Date: 2012-03-15

Type of information: Company acquisition

Acquired company: FerroKin BioSciences (USA)

Acquiring company: Shire (UK - USA)

Amount: up to $225 million (€171.7 million), depending upon the achievement of certain clinical development, regulatory and net sales targets

Terms:

Shire has signed an agreement to acquire FerroKin BioSciences, Inc., for an upfront payment of $100 million, payable in cash at closing, plus potential post-closing milestone payments of up to $225 million, depending upon the achievement of certain clinical development, regulatory and net sales targets. The closing of the acquisition is subject to customary conditions, including (i) adoption of the Merger Agreement by a required proportion of FerroKin’s equityholders; (ii) holders of no more than 2% of FerroKin’s capital stock having exercised or being entitled to exercise appraisal rights under Delaware law and (iii) the absence of a material adverse effect on FerroKin BioSciences.

Details:

This acquisition is a strategic step in building Shire’s hematology business, which already includes Xagrid and a growing development pipeline. It adds a differentiated product in development (iron chelator FBS0701), with global rights, in a global market currently worth over $900 million and growing.
FBS0701 is a once-daily oral capsule in development for the treatment of iron overload due to chronic blood transfusions in adults and children. FBS0701 has received Orphan Product designation from both the FDA and the European Medicines Agency. FerroKin BioSciences has completed four Phase 1 clinical trials to evaluate the safety, tolerability, pharmacokinetics and iron clearing activity of FBS0701 in healthy volunteers and patients.
Phase 2 dose-ranging studies in adults and children are ongoing with additional trials planned. Initial data from the adult study, presented at the American Society of Hematology in December, supports the potential for FBS0701 as an effective iron chelator with a favorable safety profile.
FBS0701 will be developed to demonstrate clinical efficacy and an attractive safety profile relative to currently approved chelating agents
Shire plans a global filing for indications for Myelodysplastic Syndrome and hemoglobinopathies initially, with a potential launch as early as 2016.

 

 

 

 

 

 

 

Related:

Hematology

Is general: Yes