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IN ONE OF the largest acquisitions ever of a biotechnology company, Shire Pharmaceuticals Group PLC has agreed to pay $4 billion in stock to acquire BioChem Pharma Inc.
Shire, based in Andover, England, will offer stock worth $37 for each share of BioChem Pharma, based in Laval, Quebec. The $37 represents a 39.6 percent premium to the closing share price of BioChem as of December 8. The merger is expected to be accretive to Shire's earnings in the first full year and is expected to close in the second quarter of next year. It is subject to approval by shareholders of both companies and regulatory agencies.
The merger creates one of the largest specialty pharmaceutical companies, with pro forma revenues of $587 million. Executives from both companies say the merger combines BioChem's development-- stage projects with Shire's direct sales infrastrucutre. Shire has direct marketing capability in the US, Canada, the UK, Ireland, France, Germany, Italy and Spain, with plans to add Japan by 2004. BioChem has a therapeutic focus in infectious diseases and cancer.
Over the last three years, Shire has used acquisitions to grow its business. In 1997, Shire acquired the drug delivery company Pharmavene Inc. and the specialty sales and marketing company Richwood Pharmaceutical Company...