Shire to Acquire NPS Pharmaceuticals

Shire to Acquire NPS Pharmaceuticals

Two months after AbbVie’s proposed acquisition of UK pharmaceutical company, Shire, fell through; another deal has been secured by the latter to acquire US biotech firm NPS Pharmaceuticals. Boards at both the company’s have confirmed the deal which is predicted to establish a stronger presence in the market for Shire and increase earnings for 2016.

Shares in the drug company have been sold to Shire for £30 each which equates to a 51% rise in the price of the shares compared to 16 December, when news of the potential acquisition was first reported.

AbbVie wanted to take over Shire in October in an attempt to reduce its tax bill by moving its tax base to Jersey where lower corporation tax rates are enjoyed. However, reform of US tax regulations that targeted such opportunities caused AbbVie to pull out.

This will be the first major corporate acquisition of the new year.

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