Shire to buy SARcode Bioscience for $160 million plus milestones

In a third takeover announcement this year, Ireland-headquartered Shire (LSE: SHP) says it plans to acquire SARcode Bioscience, a privately held biopharmaceutical company based in Brisbane, California, USA, with the aim of expanding it ophthalmics portfolio.

Under the terms of agreement, Shire will make an upfront payment of $160 million and SARcode shareholders will be eligible to receive additional undisclosed payments on the achievement of certain clinical, regulatory, and/or commercial milestones. The transaction is expected to close in the second quarter, subject to regulatory approval in the USA, and other customary closing conditions.

This acquisition continues to build Shire’s presence in the ophthalmology therapeutic category and brings a new Phase II compound – Lifitegrast – currently under development for the signs and symptoms of dry eye disease, into Shire’s portfolio. Shire anticipates launching Lifitegrast in the USA as early as 2016 pending a positive outcome of the Phase III clinical development program and regulatory approvals.