Shire (pharmaceutical company)
Shire plc was a UK-founded Jersey-registered specialty biopharmaceutical company. Originating in the United Kingdom with an operational base in the United States, its brands and products included Vyvanse, Lialda, and Adderall XR. Shire was acquired by Takeda Pharmaceutical Company on 8 January 2019.
| Company type | Subsidiary[1] |
|---|---|
| Nasdaq: SHPG | |
| ISIN | JE00B2QKY057 |
| Industry | Pharmaceuticals |
| Predecessor | Shire Pharmaceuticals Group Plc |
| Founded | 1986 |
| Defunct | 2019 |
| Fate | Acquired by Takeda |
| Headquarters | Massachusetts, United States[2][3] |
Key people | Flemming Ornskov (CEO) Thomas Dittrich (CFO) |
| Revenue | $15,160.6 million (2017)[4] |
| $2,455.2 million (2017)[4] | |
| $4,271.5 million (2017)[4] | |
Number of employees | 23,044 (2018)[5] |
| Parent | Takeda Pharmaceutical Company (2019) |
| Website | www.shire.com |
Shire was a global biotechnology company focused on serving people with rare diseases and other highly specialized conditions. The company's products were 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 manufacturing sites in Lexington, Massachusetts, and Social Circle, Georgia. Shire's headquarters in Lexington, Massachusetts, will be integrated with Takeda's new U.S. headquarters, which is being relocated from Deerfield, Illinois, to the Boston area.
History edit
Early history edit
Shire was founded in 1986 in the UK by five entrepreneurs: Harry Stratford, Dennis Stephens, Peter Moriarty, Geoff Hall and Dr Jim Murray.[6] Under the management of Rolf Stahel, Shire 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.[7] Later in the same year Shire acquired Richwood Pharmaceutical Company, forming Shire-Richwood Inc.[8]
2000 to 2009 edit
In 2001 the company acquired Biochem Canada.[9] Shire's next acquisition didn't come until 2005 when it acquired Transkaryotic Therapeutics[10] and two years later – in 2007 – New River Pharmaceuticals Inc, for a then company record of $2.6 billion.[11] With the purchase of New River, Shire gained access and ownership of Vyvanse. A year later the company acquired the German company Jerini, for $521 million. Jerini focused on treating hereditary angioedema.[12]
In 2008, in reaction to new taxation measures announced by the UK government in the treatment of royalties on patents, the company moved its tax domicile to Dublin, Ireland.[13]
2010 onwards edit
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,[14] a year later it acquired regenerative medicine manufacturer Advanced BioHealing.[15] In 2012 the company acquired FerroKin BioSciences for $325 million along with FerroKins lead iron chelator - FBS0701.[16] 2013 saw the company complete its highest number of acquisitions with Lotus Tissue Repair, Inc. (lead compound, ABH001),[17] SARcode Bioscience Inc.,[18] with the last being ViroPharma. Shire changed the name of ViroPharma to Shire Viropharma Inc. upon acquisition and on their final day of trading the company was valued at $3.3 billion.[19] At $4.2 billion, ViroPharma set a new company record.[20] In 2014 Shire acquired two rare disease drug companies: Fibrotech[21] with its antifibrotic compounds for $75 million, and Lumena, a company researching rare gastro-intestinal and hepatic compounds, for $260 million.[22]
In 2015, NPS Pharmaceuticals was acquired for $5.2 billion, bringing along its rare disease drugs Gattex and Natpara.[23] On their final day of trading, NPS had a market capitalisation of $4.99 billion. The company also acquired, later in the same year, Meritage Pharma for $245 million, Foresight Biotherapeutics for $300 million[24] and Dyax for $6.5 billion.[25][26] 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 increasing the company's 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 (which had been spun-off from Baxter the previous year[27]), creating the largest global biotech company focused solely on rare diseases.[28]
In April 2018, Shire agreed to sell its oncology business to French pharmaceutical company Servier for £1.7billion.[29]
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).[30] On 8 July, the offer was increased to $51.5 billion.[31] On 18 July, it was announced that AbbVie would acquire Shire for $54.8 billion.[32] On 15 October, news broke suggesting AbbVie was reconsidering their proposed takeover deal due to changes in US "Tax Inversion" law[33] and on 16 October AbbVie's board recommended that shareholders vote against the deal.[34] This news sent Shire's share price down over 27%; however, AbbVie would be subject to a $1.6 billion break-up fee, payable to Shire.[35] On 21 October, the merger was called off.[36]
Takeda takeover edit
In April 2018, reported that Takeda Pharmaceutical Company had an approach to acquire Shire. Days later Shire announced they had rejected all three Takeda bids. The first bid valued the business at £41 billion (£28 per Shire shares paid in Takeda shares plus £16 per share in cash), the second £43 billion (£28.75 per Shire shares paid in Takeda shares plus £16.75 per share in cash) and the third £44 billion (£28 per Shire shares paid in Takeda shares plus £17.75 per share in cash).[37] Reuters also reported interest from Allergan[38] however they ruled themselves out a day later.[39] A day later Takeda increased their offer with a fourth bid, to £26 per Shire shares paid in Takeda shares plus £21 per share in cash - giving a total value of £44.3 billion ($62.1 billion).[40] On 24 April, Takeda submitted an enhanced fifth bid for the company.[41] On 25 April, Shire said that they will recommend the revised £45.8 billion ($64 billion) offer to their shareholders. The enhanced offer included a more generous cash component, with the deal offering £21.76 ($30.33) in cash for each Shire ordinary share.[42][43][44] The same day, GlaxoSmithKline ruled out making any form of counter-bid.[45] On 8 May 2018, an agreement was finally reached in which Shire was sold to Takeda in a $62 billion deal.[46][47] Takeda's acquisition of Shire closed on 8 January 2019.[48]
Acquisition history edit
- Shire Plc (Founded 1986, Acq 2019)
- Pharmavene (Acq 1997)
- Richwood Pharmaceutical Company (Acq 1997)
- Biochem Canada (Acq 2001)
- Transkaryotic Therapeutics (Acq 2005)
- New River Pharmaceuticals Inc (Acq 2007)
- Jerini (Acq 2008)
- Movetis (Acq 2012)
- Advanced BioHealing (Acq 2011)
- FerroKin BioSciences (Acq 2012)
- Lotus Tissue Repair, Inc (Acq 2013)
- Premacure AB (Acq 2013)
- SARcode Bioscience Inc (Acq 2013)
- ViroPharma (Founded 1994, Acq 2013)
- Lev Pharmaceuticals (Acq 2008)
- Fibrotech (Acq 2014)
- Lumena (Acq 2014)
- NPS Pharmaceuticals (Acq 2015)
- Meritage Pharma (Acq 2015)
- Foresight Biotherapeutics (Acq 2015)
- Dyax (Acq 2015)
- Baxalta (Acq 2016)
Products edit
The Annual Revenue figures in the following table were drawn from the company's 2015 preliminary results.[49]
| Name | Annual revenue | Indication |
|---|---|---|
| Vyvanse | $1,722M | Attention deficit hyperactivity disorder (ADHD) |
| Lialda/Mezavant | $684M | Gastrointestinal (ulcerative colitis) |
| Cinryze | $618M | Swelling attacks in children |
| Gattex/Revestive & Natpara | $166M | Short Bowel Syndrome (SBS) & hypocalcemia in patients with hypoparathyroidism |
| Firazyr | $445M | Hereditary angioedema |
| Replagal | $441M | Fabry Disease (α-galactosidase A deficiency) |
| Adderall XR | $362M | Attention deficit hyperactivity disorder (ADHD) |
| Vpriv | $342M | Type 1 Gaucher disease |
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.[50]
The Annual Revenue figures in the following Table were drawn from the company's 2015 preliminary results.[49]
| Name | Annual revenue | Indication | Licensee |
|---|---|---|---|
| Adderall XR | $70.3M | Attention deficit hyperactivity disorder (ADHD) | Impax 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
Flemming Ørnskov, was the company's chief executive officer through 8 January 2019 with Takeda's acquisition of Shire.[51] Ginger Gregory as chief human resources officer, Jeffrey Poulton as CFO, and Philip Vickers as head of R&D.[52] James Bowling vacated his position as interim CFO in the aftermath of the collapse of the AbbVie inversion deal.[53] The chair of Shire's board of directors was Susan Kilsby.[54]
Legal issues edit
False Claims Act violations edit
In September 2014, Shire reached a $56.5 million settlement with the U.S. Department of Justice for alleged violations of the False Claims Act. The Justice Department alleged that Shire had improperly marketed and promoted Adderall XR, Daytrana, Vyvane, Pentasa, and Lialda during various periods between 2004 and 2010. The allegations included claims that Shire had made exaggerated and false statements regarding product safety, promoted medications for non-FDA approved off-label use, and marketed products on unsubstantiated claims of beneficial side effects, including reductions in criminality, traffic accidents, sexually transmitted infections, and divorce rates.[55][56][57]
Illegal promotion of Dermagraft edit
In August 2017, Shire reached a $350 million settlement with the Department of Justice for violations of the same act, regarding the unlawful promotion of Shire's product Dermagraft.[58][59]
See also edit
References edit
- ^ "Takeda completes buyout of Shire to become top 10 global pharmaceutical firm". 8 January 2019. from the original on 26 February 2021. Retrieved 22 February 2021.
- ^ DeAngelis, Allison (7 January 2019). "Takeda closes $62B purchase of Shire, creating largest Mass. biotech employer". Boston Business Journal. from the original on 28 February 2022. Retrieved 24 February 2021.
- ^ "Contact us | Takeda Pharmaceuticals U.S.A., Inc". from the original on 25 February 2021. Retrieved 24 February 2021.
- ^ a b c "Preliminary Results 2017" (PDF). Shire. (PDF) from the original on 17 March 2018. Retrieved 17 March 2018.
- ^ "Shire Company Profile". craft.co. from the original on 8 October 2019. Retrieved 8 October 2019.
- ^ . Sunday Times. 27 November 2011. Archived from the original on 6 April 2016. Retrieved 26 March 2016.
- ^ Grimond, Magnus (26 February 1997). "Shire buys US drugs delivery firm for pounds 105m". The Independent. from the original on 4 March 2016. Retrieved 22 March 2016.
- ^ Grimond, Magnus (4 August 1997). "Investment Column: Shire focuses on buying Richwood". The Independent. from the original on 5 March 2016. Retrieved 22 March 2016.
- ^ Dunne, Helen (10 May 2001). "Canadians give go-ahead for Shire takeover of BioChem". Telegraph.co.uk. from the original on 28 February 2016. Retrieved 22 March 2016.
- ^ "Shire to Buy Transkaryotic Therapies for $1.6 Billion". FDA News. 29 April 2005. Retrieved 17 April 2022.
- ^ . pharmatimes.com. Archived from the original on 10 March 2016. Retrieved 22 March 2016.
- ^ "Shire to buy Jerini in $521M deal". FierceBiotech. 3 July 2008. from the original on 6 April 2016. Retrieved 22 March 2016.
- ^ Shire moves to Ireland for tax 26 May 2013 at the Wayback Machine Irish Examiner, April 2008
- ^ "Shire forges $565M buyout deal for Movetis". FierceBiotech. 3 August 2010. from the original on 4 March 2016. Retrieved 22 March 2016.
- ^ Grogan, Kevin (18 May 2011). . pharmatimes.com. Archived from the original on 7 March 2016. Retrieved 22 March 2016.
- ^ Reuters Editorial (15 March 2012). "Shire to buy U.S. biotech firm for up to $325 million". Reuters. from the original on 8 March 2016. Retrieved 22 March 2016.
{{cite web}}:|author=has generic name (help) - ^ "Shire Acquires Lotus Tissue Repair". GEN. 8 January 2013. from the original on 13 April 2016. Retrieved 26 March 2016.
- ^ "Shire to Buy Eye-Drug Maker SARcode for $160 Million". Bloomberg.com. Bloomberg. 25 March 2013. from the original on 7 April 2016. Retrieved 26 March 2016.
- ^ "Shire Buys ViroPharma for $4.2 Billion to Add Orphan Drug". Bloomberg.com. Bloomberg. 11 November 2013. from the original on 19 March 2016. Retrieved 26 March 2016.
- ^ Trista Kelley & Makiko Kitamura (11 November 2013). "Shire Buys ViroPharma for $4.2 Billion to Add Orphan Drug". Bloomberg.com. from the original on 11 January 2015. Retrieved 22 March 2016.
- ^ "Fibrotech acquired by Shire for US$75M plus milestones". FierceBiotech. May 2014. from the original on 17 July 2014. Retrieved 23 September 2014.
- ^ "GEN - News Highlights:Shire Acquires Lumena for $260M+". GEN. 12 May 2014. from the original on 2 June 2014. Retrieved 2 June 2014.
- ^ "UK drug firm Shire to buy US rival in $5.2bn deal". BBC News. 11 January 2015. from the original on 17 February 2016. Retrieved 22 March 2016.
- ^ "Shire Acquires Foresight Biotherapeutics for $300M". GEN. 3 August 2015. from the original on 6 April 2016. Retrieved 22 March 2016.
- ^ "Dyax Corp. Announces Early Termination of Hart-Scott-Rodino Waiting Period - Business Wire". businesswire.com. 2 December 2015. from the original on 4 March 2016. Retrieved 22 March 2016.
- ^ "Shire to Acquire Dyax for Up to $6.5B". GEN. 2 November 2015. from the original on 19 March 2016. Retrieved 22 March 2016.
- ^ "Baxter's Board of Directors Approves Separation of Baxalta and Declares Special Dividend of Baxalta Stock". investor.baxter.com. Baxter International Inc. from the original on 6 May 2017. Retrieved 15 January 2017.
- ^ "Shire, Baxalta Tie the Knot in $32B Merger". GEN. 11 January 2016. from the original on 20 March 2016. Retrieved 22 March 2016.
- ^ Javed, Ayesha (16 April 2018). "Shire sells oncology unit for £1.7bn as Takeda boss prepares potential bid". The Telegraph. from the original on 16 April 2018. Retrieved 16 April 2018.
- ^ David Welch, Matthew Campbell & Simeon Bennett (21 June 2014). "AbbVie Said to Consider New Bid After Shire Rejects Offer". Bloomberg. from the original on 12 January 2015. Retrieved 11 March 2017.
- ^ Caroline Chen, Drew Armstrong & Simeon Bennett (8 July 2014). "AbbVie Raises Offer for Shire to $51.5 Billion". Bloomberg. from the original on 8 January 2015. Retrieved 11 March 2017.
- ^ Simeon Bennett & Caroline Chen (19 July 2014). "AbbVie Is Biggest to Quit U.S. Address in $55 Billion Shire Deal". Bloomberg. from the original on 12 January 2015. Retrieved 11 March 2017.
- ^ Albertina Torsoli, Kristen Hallam & Oliver Staley (15 October 2014). "AbbVie Reconsidering Shire Sends Inversion Targets Down". Bloomberg. from the original on 11 January 2015. Retrieved 11 March 2017.
- ^ Albertina Torsoli, Manuel Baigorri & Matthew Campbell (16 October 2014). "AbbVie Board Recommends Holders Vote Against Shire Deal". Bloomberg. from the original on 12 January 2015. Retrieved 11 March 2017.
- ^ Albertina Torsoli, Manuel Baigorri & Matthew Campbell (16 October 2014). "Shire Shares Extend Drop After AbbVie Backtracks on Deal". Bloomberg. from the original on 9 January 2015. Retrieved 11 March 2017.
- ^ Philippidis, Alex (21 October 2014). "AbbVie, Shire Call Off $51.7B Merger". GEN News Highlights. Gen. Eng. Biotechnol. News. from the original on 24 October 2014. Retrieved 22 October 2014.
- ^ "Statement re Proposal from Takeda Pharmaceutical Company Limited". www.shire.com. from the original on 20 April 2018. Retrieved 19 April 2018.
- ^ Roumeliotis, Greg (20 April 2018). "Shire rejects $63 billion Takeda bid as Allergan drops pursuit". Reuters. from the original on 19 April 2018. Retrieved 19 April 2018.
- ^ Editorial, Reuters (19 April 2018). "Exclusive - Allergan in talks to acquire Shire, competing against..." Reuters. from the original on 19 April 2018. Retrieved 19 April 2018.
{{cite news}}:|first=has generic name (help) - ^ Nussey, Sam (20 April 2018). "Japan's Takeda sweetens $62 billion Shire offer". Reuters. from the original on 20 April 2018. Retrieved 20 April 2018.
- ^ Martin, Ben (25 April 2018). "Shire willing to back $64 billion Takeda bid, market signals doubts". Reuters. from the original on 24 April 2018. Retrieved 24 April 2018.
- ^ "Shire backs Takeda's £46bn offer". BBC News. 25 April 2018. from the original on 28 April 2018. Retrieved 22 June 2018.
- ^ Martin, Ben (25 April 2018). "Shire willing to back $64 billion Takeda bid, market signals doubts". Reuters. from the original on 25 April 2018. Retrieved 25 April 2018.
- ^ Nussey, Sam (25 April 2018). "Shire bid marks Takeda's latest - and biggest - push for global status". Reuters. from the original on 25 April 2018. Retrieved 25 April 2018.
- ^ Editorial, Reuters (25 April 2018). "GSK rules out entering Shire takeover battle". Reuters. from the original on 25 April 2018. Retrieved 25 April 2018.
{{cite news}}:|first=has generic name (help) - ^ "Takeda Clinches $62 Billion Deal to Buy Drugmaker Shire". Bloomberg.com. from the original on 8 May 2018. Retrieved 8 May 2018.
- ^ Reuters Editorial. "Japan's Takeda agrees $62 billion takeover of Shire". U.S. from the original on 8 May 2018. Retrieved 8 May 2018.
{{cite news}}:|author=has generic name (help) - ^ "Takeda completes Shire acquisition". Pharma Times. 8 January 2019. from the original on 11 January 2019. Retrieved 24 January 2019.
- ^ a b "Preliminary Results 2015" (PDF). Shire. (PDF) from the original on 6 April 2016. Retrieved 26 March 2016.
- ^ "GEN - News Highlights:ArmaGen Licenses AGT-182 Rights to Shire for Up to $225M". GEN. 23 July 2014. from the original on 27 July 2014. Retrieved 24 July 2014.
- ^ Bennett, Simeon (10 June 2013). "Shire's New CEO Adds Sales Staff, Damps Takeover Talk". Bloomberg Business News. from the original on 3 April 2016. Retrieved 22 March 2016.
- ^ Shire Staff (22 March 2016). "Leadership: Executive Committee". Shire. from the original on 15 June 2015. Retrieved 13 February 2015.
- ^ Schaps, Karolin & Hirschler, Ben (20 October 2014). "Shire CFO to leave drugmaker as AbbVie drops bid". Reuters. from the original on 4 April 2016. Retrieved 22 March 2016.
- ^ Shire Staff (22 March 2016). "Leadership: Board of Directors". Shire. from the original on 25 March 2016. Retrieved 22 March 2016.
- ^ "Shire Pays $56.5M to Settle False-Claims Whistleblower Suit". Genetic Engineering & Biotechnology News. 25 September 2014. from the original on 27 November 2021. Retrieved 27 November 2021.
- ^ "Shire Pharmaceuticals LLC to Pay $56.5 Million to Resolve False Claims Act Allegations Relating to Drug Marketing and Promotion Practices". The United States Department of Justice. Office of Public Affairs. 24 September 2014. from the original on 27 November 2021. Retrieved 27 November 2021.
- ^ "Adderall Maker to Pay $56.5 Million to Resolve False Claims Charge". Corporate Crime Reporter. 25 September 2014. from the original on 27 November 2021. Retrieved 27 November 2021.
- ^ "Pharmaceutical company agrees to 'landmark' settlement in Tampa federal court". The Business Journals. from the original on 14 January 2017. Retrieved 27 November 2021.
- ^ "U.S. says Shire subsidiaries to pay $350 million to settle false claims act allegations". Reuters. 11 January 2017. from the original on 27 November 2021. Retrieved 27 November 2021.
External links edit
- Official website
- Historical business data for Shire plc:
- SEC filings