UK's Shire acquires maker of Firazyr, Jerini AG

The UK's third-largest drugmaker, Shire Ltd, is acquiring  Germany's Jerini AG through a public offer at a 73-per cent premium at  €6.25 per share in cash amounting to  €349 million for Germany's Jerini AG,  maker of Firazyr in pre-filled syringe for easy injections used in the treatment  of the rare life-threatening genetic  disorder, hereditary angioedema, which affects the blood vessels, causing rapid swelling of the hands, feet and face.

The deal represents a premium of approximately 199 per cent over the volume-weighted average stock price of €2.09 for the three months prior to the announcement of the offer, for the maker of  Firazyr, which has a special "orphan" drug status that grants it up to 10 years of market exclusivity from the date of the original license.

Drugs used to treat a rare disease are granted a special "orphan" status on account of their limited sales potential that enables it to be be sold at a higher price.  

The acquisitionof Firazyr enables Shire meet its strategic goal to become the leading specialty biopharmaceutical company that focuses on meeting the needs of the specialist physician. The acquisition will bring Shire up to $400 million annually  from Firazyr in the second half of 2010 after its launch in Europe later this year and enable the UK firm to counter to some extent loss of revenue when the patent on its best-selling hyperactivity drug  Adderall XR expires next year.

The product was rejected in the US in April, and Shire is working with Jerini on issues of efficacy, which it expects to be reparable in the US, as the EU  drug regulator has found that the product already works. A late-stage test of Firazyr failed to show a clear benefit versus a placebo.

Firazyr will compete with products from Lev Pharmaceuticals Inc. and Pharming Group NV to be the first US drug for attacks of hereditary angioedema.

Jerini is a pharmaceutical company based in Berlin, Germany, focusing on the discovery, development, and commercialization of novel peptide-based drugs. Jerini develops drugs for disease indications that until now have limited or no treatment options. Alongside the development of its own compounds, Jerini works with other drug firms.

After a successful takeover and a transition phase, founder and CEO of Jerini AG, Prof. Dr. Jens Schneider-Mergener, and the other members of the Management Board will step down from their offices, but may consider to continue development projects in cooperation with the experienced Jerini team in a new company.