Shire weighs bid for rare disease specialist NPS Pharmaceuticals

Irish drugmaker Shire Plc is weighing a bid for US-based based rare disease specialist NPS Pharmaceuticals Inc, Bloomberg yesterday reported, citing people familiar with the matter.

The move comes just two months after US drug firm AbbVie Inc dropped plans of buying Shire for $55 billion after the US Treasury changed tax rules to prevent so called ''corporate inversions''.

While NPS, which has a market cap of $3.9 billion, is high on Shire's takeover list, other targets are also being considered, the report said.

The timing of any offer could depend on whether the US Food and Drug Administration approves NPS's hypoparathyroidism treatment drug Natpara by 24 January, which would be the first marketed treatment for the potentially fatal disorder, the report added.

Shire is sitting on $1.64 billion pile it received as breakup fee from AbbVie, and recently revealed a $2.1-billion loan facility which it said might used for general corporate purposes.

New Jersey-based NPS was founded in 1986 by Dr. Hunter Jackson and Dr Thomas Parks, two research scientists from the University of Utah School of Medicine studying the medicinal effects of spider venom.

It launched its first drug in 2013 called Gattex in the US and Revestive in Europe for the treatment of short bowel syndrome.

It is also developing Natpara - an investigational medicine for the treatment for Hypoparathyroidism, a rare endocrine disorder characterised by insufficient levels of parathyroid hormone.  The drug is currently under FDA review and the company plans to file a European Marketing Authorization Application this year.

Its lead pipeline candidate is a small molecule being developed for the treatment of Autosomal Dominant Hypocalcemia or ADH, which has no approved therapy for this ultra-rare, life-long genetic disorder that affects both adults and children.

With major operations in the US, UK and Switzerland, and a network of offices and distribution channels throughout Europe, South America, Canada, and the Pacific Rim, Dublin-based Shire provides treatments in neuroscience, rare diseases, gastrointestinal, and internal medicine.

Some of its rare-disease drugs include Elaprase for Hunter syndrome and Replagal for Fabry disease.

It employs over 5,000 people in 29 countries and posted net income of $665 million in 2013 on revenues of $4.9 billion.

AbbVie, which was split from Abbott Laboratories in January 2013, has 15 research and manufacturing facilities around the world and posted net income of $4.1 billion in 2013 on revenues of $18.8 billion.