) will acquire
) for approximately $50 per share or $4.2 billion, in a bid to
strengthen its portfolio of rare disease drugs. ViroPharma's lead
drug, Cinryze, is approved in the U.S. for routine prophylaxis
against angioedema attacks in adolescents and adults with
hereditary HAE. Cinryze complements Shire's Firazyr, indicated
for the on-demand treatment of acute HAE attacks.
The acquisition is structured as an all-cash tender offer for
all the outstanding shares of ViroPharma common stock at a price
of $50 per share. The remaining untendered shares of ViroPharma
will be converted into a $50 cash per share consideration as in
the tender offer.
Shire recently extended the expiration of its tender offer for
all of the outstanding common shares of ViroPharma until the
midnight of Jan 9, 2014 (New York City time) from the earlier
schedule of 6:00 p.m. Dec 26, 2013.
Roughly 50,217,259 common shares of ViroPharma (76% of
outstanding shares of ViroPharma) were tendered as of 6:00 p.m.
on Dec 26, 2013.
Shire expects the addition of Cinryze to its rare disease
business unit to propel revenues to over $2 billion in 2014,
accounting for approximately 40% of Shire's total product sales.
Moreover, Shire expects to realize approximately $150 million of
annual cost synergies across the business by 2015 from the
acquisition. The acquisition is expected to be immediately
accretive to Shire's bottom line.
Shire's efforts to realign its business structure to drive
growth and innovation are noteworthy. The impending acquisition
of ViroPharma should significantly boost its rare disease
portfolio and we expect accretion once the acquisition goes
Shire and ViroPharma both carry a Zacks Rank #3 (Hold).
Investors may consider companies like
Questcor Pharmaceuticals Inc.
), which carry a Zacks Rank #1 (Strong Buy).
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis
QUESTCOR PHARMA (QCOR): Free Stock Analysis
SHIRE PLC-ADR (SHPG): Free Stock Analysis
VIROPHARMA (VPHM): Free Stock Analysis Report
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