LONDON, UK (GlobalData), 18 November 2013 — Shire’s move to buy ViroPharma for $50 a share, in a transaction worth a considerable $4.2 billion, is the largest in the company’s history, and it will significantly boost its six-year growth projection, says an analyst with research and consulting firm GlobalData.
According to GlobalData, ViroPharma will add revenues of $831m to Shire by 2018. Including the acquisition, Shire can expect growth of $2.6 billion and total revenues of $7.3 billion in 2018, putting the company one place behind Allergan in the global pharma rankings.
The principal asset driving the deal is ViroPharma’s Cinryze, a Food and Drug Administration (FDA)-approved C1 esterase inhibitor used to prevent hereditary angioedema (HAE) attacks. The orphan-designated Cinryze generated sales of $327m in 2012, a figure which is expected to rise to $700m by 2018, making it Shire’s third highest-selling therapeutic.
Joshua Owide, GlobalData’s Director for Healthcare Industry Dynamics, says: “In order to justify the 27% premium being paid to secure the aforementioned assets, Shire will need to make significant operating cost savings. This will be helped by the fact that ViroPharma’s Cinryze complements Shire’s own portfolio, which contains the HAE treatment, Firazyr, among other orphan drug treatments.
“Additionally, Shire will benefit from noteworthy tax saving from the deal, further justifying the lofty premium.”
This deal, Owide says, will help dispel the rumors that Shire itself was being the subject of a takeover by Big Pharma.
- Comment provided by Joshua Owide, GlobalData’s Director for Healthcare Industry Dynamics.
- All sales forecasts are sourced from GlobalData’s recently-launched Sales Analytics Database.
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