Shire Buying SARcode for $160 Million
Shire of Dublin, Ireland, is buying Brisbane, Calif.-based biopharmaceutical startup SARcode Bioscience for $160 million upfront, "plus additional undisclosed payments upon achievement of certain clinical, regulatory, and/or commercial milestones," Shire announced Monday.
With the company comes SARcode's phase 3 compound LIFITEGRAST, which the company hopes to use to treat dry eye disease. Shire thinks that after it buys the company -- and assuming FDA approval, of course -- it could bring this product to market as early as 2016.
Shire notes that 25 million people suffer from dry eye disease in the U.S., of which 9 million are candidates for prescription drug treatment -- yet only 10% of these actually receive such treatment today.
The company notes also that the acquisition aligns well with its purchase, earlier this month, of Swedish biotech Premacure, which is doing work on another eye-related treatment -- specifically, a prevention for infant retinopathy of prematurity. Shire says it is using acquisitions such as these to target a global ophthalmic pharmaceutical market, valued at approximately $13 billion in 2012 with a compound annual growth rate of 4.5%.
Investors are less enthusiastic. In response to today's news, Shire shares fell 0.1% to close at $90.61.
The article Shire Buying SARcode for $160 Million originally appeared on Fool.com.Fool contributor Rich Smith and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.