Shire soars on talk of Pfizer interest

Source: Healthcare Exec

Date :17/03/2008 09:48:23

Shares in drugmaker Shire Plc leapt as much as ten percent on Friday, as traders reported talk of bid interest from U.S. rival Pfizer Inc.

The UK's third-largest pharmaceuticals group rose to a session high of £10.35 amid rumours that Pfizer was lining up a £13-a-share offer. This valued the drug maker at drug maker at about £5.7 billion.

Shire and Pfizer said they did not comment on market rumors or speculation.

Replacement therapies

Analysts said Pfizer may be attracted by Shire's attention deficit disorder drug Vyvanse and its pipeline of human genetic therapies.

Some believe Pfizer is keen to build its portfolio of drugs ahead of the expected loss of $12 billion of sales when its cholesterol drug Lipitor goes off-patent, the Financial Times said.

However, others thought a tie-up was unlikely, saying Shire's focus on treatments for attention deficit hyperactivity disorder (ADHD) and enzyme replacement therapies did not fit with Pfizer's drugs portfolio or its pipeline of new medicines.

"We think it's very, very unlikely - it doesn't fit well with Pfizer's pipeline or current portfolio," said Canaccord Adams analyst Guillaume van Renterghem.

March 17, 2008