Shire (pharmaceutical company)

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Shire Plc
Public limited company
Traded as LSESHP, NASDAQSHPG
Industry Pharmaceuticals
Predecessor Shire Pharmaceuticals Group Plc
Founded 1986; 30 years ago (1986)
Headquarters Registered Office: St Helier, Jersey
Corporate HQ: Dublin, Ireland
UK Operations: Basingstoke, England
Key people
Susan Kilsby (Chairman)
Flemming Ørnskov, MD (CEO)
Revenue $6,416.7 million (2015)[1]
$1,419.5 million (2015)[1]
$1,303.4 million (2015)[1]
Number of employees
5,300 (2014)[2]
Website www.shire.com

Shire Plc is a Jersey-registered, Irish-headquartered global specialty biopharmaceutical company. Originating in the United Kingdom with an operational base in the United States, its brands and products include Vyvanse. Shire has its primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. Shire has a secondary listing on NASDAQ.

Shire is a global biotechnology company focused on serving people with rare diseases and other highly specialized conditions. The company's products are available in more than 100 countries across core therapeutic areas including Hematology, Immunology, Neuroscience, Lysosomal Storage Disorders, Gastrointestinal / Internal Medicine / Endocrine and Hereditary Angioedema; a growing franchise in Oncology; and an emerging, innovative pipeline in Ophthalmics.

The original corporate headquarters was located in Basingstoke, Hampshire, England. Main offices are located in Dublin, Ireland, the United States in Cambridge, Massachusetts and Chicago, Illinois and in Zug, Switzerland. In addition, Shire owns a manufacturing site in Lexington, Massachusetts and building a new manufacturing facility in Dublin, Ireland. It announced in November 2013 that it would be further reducing its presence in the UK.[3]

History[edit]

Shire was founded and funded in 1986 in the UK by four entrepreneurs. These four entrepreneurs were Harry Stratford, Dennis Stephens, Peter Moriarty, and Geoff Hall.[4] It was first listed on the London Stock Exchange in 1996. Shire's initial products were calcium supplements (Calcichew-D3) for patients seeking to treat or prevent osteoporosis. In 1997 the company acquired Pharmavene for £105 million in order to access Pharmavene's drug delivery methods.[5] Later in the same year Shire acquired Richwood Pharmaceutical Company, forming Shire-Richwood Inc.[6]

In 2001 the company acquired Biochem Canada.[7] Shire's next acquisition didn't come until 2005 when it acquired Transkaryotic Therapeutics[8] and two years later - in 2007 - New River Pharmaceuticals Inc, for a then company record of $2.6 billion.[9] With the purchase of New River, Shire gained access and ownership of Vyvanse. A year late the company acquired the German company Jerini, for $521 million. Jerini focused on treating hereditary angioedema.[10]

In 2008, in reaction to new taxation measures announced by the Labour Party in the treatment of royalties on patents, the company moved its tax domicile to Dublin, Ireland.[11]

2010 saw a change in company strategy, with the company seeking to expand through mergers and acquisitions - culminating in the company becoming one of the most acquisitive in the industry. In 2010 the company acquired Movetis, a Belgian company focusing on gastrointestinal products for $565 million,[12] a year later it acquired regenerative medicine manufacturer Advanced BioHealing.[13] In 2012 the company acquired FerroKin BioSciences for $325 million along with FerroKins lead iron chelator - FBS0701.[14] 2013 saw the company complete its highest number of acquisitions with Lotus Tissue Repair, Inc. (lead compound, ABH001),[15] SARcode Bioscience Inc.,[16] with the last being ViroPharma.[17] At $4.2 billion, ViroPharma set a new company record.[18] In 2014 Shire acquired two rare disease drug companies; Fibrotech[19] with its antifibrotic compounds for $75 million and Lumena, a company researching rare gastro-intestinal and hepatic compounds, for $260 million.[20]

Aborted AbbVie takeover[edit]

On 20 June 2014, Shire rejected a takeover attempt by AbbVie. AbbVie offered £46.11 per share (£27.3 billion or $46.5 billion in total).[21] On 8 July the offer was increased to $51.5 billion.[22] On 18 July, it was announced that AbbVie would acquire Shire for $54.8 billion.[23] On 15 October, news broke suggesting AbbVie was reconsidering their proposed takeover deal due to changes in US "Tax Inversion" law [24] and on 16 October AbbVie's board recommended that shareholders vote against the deal.[25] This news sent Shire's share price down over 27%, however AbbVie will be subject to a $1.6 billion break up fee, payable to Shire.[26] On 21 October the merger was called off.[27]

In 2015, NPS Pharmaceuticals was acquired for $5.2 billion, bringing along its rare disease drugs Gattex and Natpara.[28] The company also acquired, later in the same year Meritage Pharma for $245 million, Foresight Biotherapeutics for $300 million[29] and Dyax for $6.5 billion.[30][31] The purchases bolstered Shires Gastro-intestinal and rare disease sectors, with Phase-III ready treatment - Budesonide - for the treatment of eosinophilic esophagitis. As well as expanding the company's pipeline with a late-stage treatment candidate for infectious conjunctivitis with lead candidate FST-100 and increased the companies rare disease catalogue with Dyax’s portfolio of plasma kallikrein inhibitors against hereditary angioedema (led by the approved drug Kalbitor and the Phase III DX-2930). In January 2016, the company made its most significant purchase, with the $32 billion acquisition of Baxalta, creating the largest global biotech company focused solely on rare diseases.[32]

Investors[edit]

As of 31 December 2015, investors holding more than 0.5% of total outstanding shares include the Harbor Capital Appreciation Fund (with 1.17%), and the institutional investors Jennison Associates (3.59%), Paulson & Company (3.42%), Waddell & Reed (1.81%), Fidelity (1.28%), T. Rowe Price Associates (0.84%), FMR (0.79%), Goldman Sachs Group (0.53%), and Invesco (0.50%).[33]

Acquisition history[edit]

Click show to reveal an illustration of Shire mergers, acquisitions, spin-offs, and historical predecessors, complete as of this date.

Products[edit]

The Annual Revenue figures in the following table were drawn from the company's 2015 full year report of preliminary results.[1]

A container of Adderall XR
Name Annual revenue Indication
Vyvanse $1,722M Attention Deficit Hyperactivity Disorder (ADHD)
Lialda/Mezavant $684M Gastrointestinal (Ulcerative colitis)
Cinryze $618M
Gattex/Revestive & Natpara $166M
Firazyr $445M (Hereditary angioedema)

Licences & Royalties[edit]

In July 2014, Shire licensed the rights to the investigational Hunter syndrome compound, AGT-182, from ArmaGen for up to $225 million.[55]

The Annual Revenue figures in the following Table were drawn from the company's Q4 report of preliminary results.[1]

Name Annual revenue Indication Licensee
Adderall XR $70.3M Attention Deficit Hyperactivity Disorder (ADHD) Imapx and Teva
3TC (Lamivudine) and Zeffix (Lamivudine) $91.6M HIV and Chronic hepatitis B GlaxoSmithKline
Fosrenol $53.3M Renal disease Bayer Yakuhin
Other $26.4M

Corporate leadership[edit]

As of March 2016, the leadership of the company is provided by its CEO, Flemming Ørnskov, who has been the company's chief executive officer since mid-2013.[56] Ginger Gregory as Chief Human Resources Officer, Jeffrey Poulton as CFO, and Philip Vickers as Head of R&D.[57] James Bowling vacated his position as interim CFO in the aftermath of the collapse o the AbbVie inversion deal.[58] The Chair of Shire's Board of Directors is Susan Kilsby.[59]

See also[edit]

References[edit]

  1. ^ a b c d e "Preliminary Results 2015" (PDF). Shire. Retrieved 26 March 2016. 
  2. ^ "Join Us". shire.com. Retrieved 22 March 2016. 
  3. ^ "Shire delivers fresh blow to UK life sciences". Financial Times. 10 November 2013. Retrieved 8 December 2013. (subscription required)
  4. ^ "Shire is one of the big stars". Sunday Times. 27 November 2011. Retrieved 26 March 2016. 
  5. ^ Grimond, Magnus (1997-02-26). "Shire buys US drugs delivery firm for pounds 105m". The Independent. Retrieved 22 March 2016. 
  6. ^ Grimond, Magnus (1997-08-04). "Investment Column: Shire focuses on buying Richwood". The Independent. Retrieved 22 March 2016. 
  7. ^ Dunne, Helen (2001-05-10). "Canadians give go-ahead for Shire takeover of BioChem". Telegraph.co.uk. Retrieved 22 March 2016. 
  8. ^ "U.K. drug maker agrees to buy Transkaryotic". readabstracts.com. Retrieved 22 March 2016. 
  9. ^ "Shire buys New River Pharmaceuticals for $2.6 billion". pharmatimes.com. Retrieved 22 March 2016. 
  10. ^ "Shire to buy Jerini in $521M deal". FierceBiotech. Retrieved 22 March 2016. 
  11. ^ Shire moves to Ireland for tax Irish Examiner, April 2008
  12. ^ "Shire forges $565M buyout deal for Movetis". FierceBiotech. Retrieved 22 March 2016. 
  13. ^ Grogan, Kevin (2011-05-18). "Shire swoops to buy Advanced BioHealing". pharmatimes.com. Retrieved 22 March 2016. 
  14. ^ Reuters Editorial (15 March 2012). "Shire to buy U.S. biotech firm for up to $325 million". Reuters. Retrieved 22 March 2016. 
  15. ^ "Shire Acquires Lotus Tissue Repair". GEN. 8 January 2013. Retrieved 26 March 2016. 
  16. ^ "Shire to Buy Eye-Drug Maker SARcode for $160 Million". Bloomberg. 25 March 2013. Retrieved 26 March 2016. 
  17. ^ "Shire Buys ViroPharma for $4.2 Billion to Add Orphan Drug". Bloomberg. 11 November 2013. Retrieved 26 March 2016. 
  18. ^ Trista Kelley & Makiko Kitamura (11 November 2013). "Shire Buys ViroPharma for $4.2 Billion to Add Orphan Drug". Bloomberg.com. Retrieved 22 March 2016. 
  19. ^ "Fibrotech acquired by Shire for US$75M plus milestones". FierceBiotech. 
  20. ^ "GEN - News Highlights:Shire Acquires Lumena for $260M+". GEN. 
  21. ^ David Welch, Matthew Campbell & Simeon Bennett (21 June 2014). "AbbVie Said to Consider New Bid After Shire Rejects Offer". Bloomberg. 
  22. ^ Caroline Chen, Drew Armstrong & Simeon Bennett (8 July 2014). "AbbVie Raises Offer for Shire to $51.5 Billion". Bloomberg. 
  23. ^ Simeon Bennett & Caroline Chen (19 July 2014). "AbbVie Is Biggest to Quit U.S. Address in $55 Billion Shire Deal". Bloomberg. 
  24. ^ Albertina Torsoli, Kristen Hallam & Oliver Staley (15 October 2014). "AbbVie Reconsidering Shire Sends Inversion Targets Down". Bloomberg. 
  25. ^ Albertina Torsoli, Manuel Baigorri & Matthew Campbell (16 October 2014). "AbbVie Board Recommends Holders Vote Against Shire Deal". Bloomberg. 
  26. ^ Albertina Torsoli, Manuel Baigorri & Matthew Campbell (16 October 2014). "Shire Shares Extend Drop After AbbVie Backtracks on Deal". Bloomberg. 
  27. ^ Philippidis, Alex (21 October 2014). "AbbVie, Shire Call Off $51.7B Merger". GEN News Highlights. Gen. Eng. Biotechnol. News. 
  28. ^ "UK drug firm Shire to buy US rival in $5.2bn deal". BBC News. Retrieved 22 March 2016. 
  29. ^ "Shire Acquires Foresight Biotherapeutics for $300M". GEN. Retrieved 22 March 2016. 
  30. ^ "Dyax Corp. Announces Early Termination of Hart-Scott-Rodino Waiting Period - Business Wire". businesswire.com. 2 December 2015. Retrieved 22 March 2016. 
  31. ^ "Shire to Acquire Dyax for Up to $6.5B". GEN. Retrieved 22 March 2016. 
  32. ^ "Shire, Baxalta Tie the Knot in $32B Merger". GEN. Retrieved 22 March 2016. 
  33. ^ Morningstar Staff (2016-03-22). "Shire PLC ADR, SHPG: Major Shareholders". Retrieved 22 March 2016. 
  34. ^ Sean Farrell. "Shire clinches $32bn takeover of Baxalta". the Guardian. 
  35. ^ "Shire to Acquire Dyax Corp, expanding and extending industry-leading Hereditary Angioedema (HAE) portfolio". 
  36. ^ Jonathan D. Rockoff (3 August 2015). "Shire to Buy Foresight Biotherapeutics for $300 Million". WSJ. 
  37. ^ "Shire continues acquisition spree with $70m Meritage Pharma deal". Telegraph.co.uk. 24 February 2015. 
  38. ^ "Shire in $5.2bn deal for US biotech NPS". Financial Times. 
  39. ^ "Shire acquires rare disease group Lumena". Telegraph.co.uk. 12 May 2014. 
  40. ^ "Shire buys Fibrotech for US$75m plus milestones". 
  41. ^ Trista Kelley & Makiko Kitamura (11 November 2013). "Shire Buys ViroPharma for $4.2 Billion to Add Orphan Drug". Bloomberg.com. 
  42. ^ "ViroPharma To Acquire Lev Pharmaceuticals". FierceBiotech. 
  43. ^ Kristen Hallam (25 March 2013). "Shire to Buy Eye-Drug Maker SARcode for $160 Million". Bloomberg.com. 
  44. ^ Simeon Bennett (12 March 2013). "Shire Buys Premacure for Blindness-Stopping Drug in Infants". Bloomberg.com. 
  45. ^ "Shire Acquires Lotus Tissue Repair". GEN. 
  46. ^ "Shire To Acquire Ferrokin Biosciences, Inc., And Its Phase 2 Iron Chelator Treatment". 
  47. ^ "Shire buys Belgian group Movetis for €428m". Financial Times. 
  48. ^ Pat Wechsler (18 May 2011). "Shire Hits 'Sweet Spot' With $750 Million U.S. Acquisition". Bloomberg.com. 
  49. ^ "Shire to buy Jerini in $521M deal". FierceBiotech. 
  50. ^ "Shire snaps up US partner for $2.6bn". Financial Times. 
  51. ^ "Shire Pharmaceuticals Group PLC buys Transkaryotic Therapeutics Inc". Chain Drug Review. 6 June 2005. Retrieved 26 March 2016. 
  52. ^ David Pringle and Christopher J. Chipello Staff Reporters of The Wall Street Journal (12 December 2000). "Shire Pharmaceuticals Will Acquire BioChem Pharma in $4Billion Deal". WSJ. 
  53. ^ The Pharma Letter. "Shire To Merge With Richwood In $186m Takeover". 
  54. ^ "Shire Offers to Buy Pharmavene of U.S.". Reuters. 26 February 1997 – via The New York Times. 
  55. ^ "GEN - News Highlights:ArmaGen Licenses AGT-182 Rights to Shire for Up to $225M". GEN. 
  56. ^ Bennett, Simeon (2013-06-10). "Shire's New CEO Adds Sales Staff, Damps Takeover Talk". Bloomberg Business News. Retrieved 22 March 2016. 
  57. ^ Shire Staff (2016-03-22). "Leadership: Executive Committee". Shire. Retrieved 13 February 2015. 
  58. ^ Schaps, Karolin & Hirschler, Ben (2014-10-20). "Shire CFO to leave drugmaker as AbbVie drops bid". Reuters. Retrieved 22 March 2016. 
  59. ^ Shire Staff (2016-03-22). "Leadership: Board of Directors". Shire. Retrieved 22 March 2016. 

External links[edit]