Shire to acquire FerroKin BioSciences; drops Replagal BLA

Ireland-headquartered Shire (LSE: SHP) said yesterday that it has signed an agreement to acquire privately-held US firm FerroKin BioSciences for an upfront payment of $100 million, payable in cash at closing, plus potential post-closing milestone payments of up to $225 million, depending upon the achievement of certain clinical development, regulatory and net sales targets.

The purchase bring with it the iron chelator FBS0701, which is seen as a possible treatment for transfusional iron overload, to Shire's hematology portfolio. This adds a differentiated product in development with global rights, in a global market currently worth over $900 million and growing, Shire noted, and is a strategic step in building the firm’s hematology business (which already includes Xagrid [anagrelide]  and a growing development pipeline).

The acquisition is consistent with Shire’s strategy of developing and commercializing differentiated specialist products prescribed by specialist physicians (hematologists/ hematologist-oncologists) served by a small sales force, the company said.