SHIRE ACQUIRES NEW RIVER

Abstract

THE BRITISH drugmaker Shire is paying $2.6 billion to gain control over Vyvanse, a new drug for treating attention deficit and hyperactivity disorder (ADHD). By acquiring Radford, Pa.-based New River Pharmaceuticals, its development partner of two years, Shire believes it will gain a new flagship product with anticipated annual sales of $1 billion. Shire's revenues totaled $1.8 billion in 2006. Vyvanse, or lisdexamfetamine dimesylate, is a lysine-derivative of D-amphetamine that is patent protected until 2023. FDA has called the drug approvable and was scheduled to act on it by Feb. 24. If approved, Vyvanse will be poised to supplant Shire's ADHD product, Adderall, which had $864 million in 2006 sales but faces generic competition in 2009. We have confidence in a positive FDA outcome, said Shire CEO Matthew Emmens in a Feb. 20 conference call with analysts. The acquisition is a logical move for Shire in the ADHD market, he added, ...