Shire plc
(
SHPGY
) recently entered into an agreement to acquire almost all the
assets of Pervasis Therapeutics. As per the terms of the agreement,
Shire will make an upfront payment and regulatory, development and
commercial milestones upon the achievement of certain pre-specified
conditions. Financial details of the deal were not disclosed.
Vascugel, the lead pipeline candidate at Pervasis, is developed
using an acute vascular repair technology for improving
hemodialysis access for patients with end-stage renal disease
(ESRD). The candidate has orphan drug designation in both US and
Europe and is currently in phase II studies.
This acquisition will strengthen the company's portfolio and
complement Shire's product Dermagraft for diabetic foot ulcers.
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. Shire
also entered into an agreement to acquire FerroKin BioSciences,
Inc. for approximately $325 million.
Our Recommendation
We currently have a Neutral recommendation on Shire. The stock
carries a Zacks #3 Rank (Neutral 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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