Shire acquires Lumena Pharma, adding to rare disease portfolio

Ireland-headquartered drugmaker Shire (LSE: SHP) says it will acquire San Diego, USA-based rare disease focussed company Lumena Pharmaceuticals for an upfront payment of $260 million in cash, plus a payment for net cash at closing, and near-term contingent milestone payments related to ongoing clinical trials.

The transaction will add to Shire's rare diseases portfolio and leverages this expertise, and is a perfect combination with Shire's already strong gastrointestinal (GI) presence, the UK firm said. Shire does not expect the acquisition of Lumena to result in a change to its previously-stated earnings guidance for 2014 and has not said when it expects the deal to complete.

Shire chief executive Flemming Ornskov comments: “Our pipeline and strategic focus on rare diseases is even further strengthened with the acquisition of Lumena Pharmaceuticals, which also complements our strong GI presence. These attractive potential treatments may offer new hope to patients with rare cholestatic liver disease and further contribute to Shire’s future growth. We are excited by the possibilities of these new assets in liver disease. We have the resources, the infrastructure and the operating capacity to invest in these new potential growth drivers which add further value to Shire’s innovative pipeline.”