Shire plc
(
SHPGY
) recently entered into an agreement to acquire FerroKin
BioSciences, Inc. As per the terms of the agreement, Shire will
make an upfront payment of $100 million and up to $225 million as
regulatory, development and commercial milestones upon the
achievement of certain pre-specified conditions.
FBS0701, the lead pipeline candidate at FerroKin, is a
once-daily oral treatment currently in phase II studies for
patients with transfusional iron overload. The presence of surplus
iron in the liver, heart and other vital organs leads to
dysfunction and failure of the organs.
Transfusion-dependent patients often die due to iron overload.
The company intends to seek approval for indications like
myelodysplastic syndrome and hemoglobinopathies with potential
launch in 2016.
This acquisition will strengthen Shire's hematology portfolio
and is in line with the company's strategy of targeting specialist
markets with strong patent protection and global rights.
Shire has formed a number of alliances to expand its pipeline.
In January, the company acquired the US rights of Resolor from
Janssen Pharmaceutica N.V., a
Johnson & Johnson
(
JNJ
) company.
Soon after this, in February, the company entered into a
collaboration and license agreement for the development of products
for hemophilia and other monogenic diseases with
Sangamo BioSciences, Inc.
(
SGMO
). These products will be developed using Sangamo's zinc finger
DNA-binding protein (ZFP) technology. More recently, in March,
Shire entered into an agreement with arGEN-X to create novel
treatments for rare genetic diseases.
Our Recommendation
We currently have a Neutral recommendation on Shire. The stock
carries a Zacks #2 Rank (Buy rating) in the short run.
Shire's recent collaborations and acquisitions (including
Movetis and Advanced BioHealing Inc.) have added immense potential
to its pipeline. With several of its products already facing or
likely to face generic competition, the company's pipeline needs to
deliver.
JOHNSON & JOHNS (
JNJ
): Free Stock Analysis Report
SANGAMO BIOSCI (
SGMO
): Free Stock Analysis Report
SHIRE PLC-ADR (
SHPGY
): Free Stock Analysis Report
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