Shire's acquisition adds new orphan drug to portfolio

A German subsidiary of global specialty biopharma firm Shire is to launch a voluntary public takeover offer for shares in Jerini, a German biotech business.

The Maia Elfte Vermogensverwaltungs-GmbH, which is to be renamed Shire Deutschland Investments GmbH will add new drugs including Jerini's lead compound FIRAZYR to its portfolio of treatments for rare disorders.

The development of FIRAZYR, a first-in-class orphan drug, will benefit from Shire HGT's global infrastructure, sales, medical and regulatory teams, orphan drug know-how and financial support.

The drug is to be launched in Europe later this year that treats the effects of hereditary angioedema (HAE). This debilitating and potentially life-threatening genetic disease causes unpredictable recurring swelling attacks in the hands, feet, face, larynx, and abdomen.

On completion of the acquisition, Shire will conduct a strategic review of Jerini's other assets including Jerini Ophthalmic, Inc., a US subsidiary which is developing a treatment for Wet Age-related Macular Degeneration (AMD) and JPT Peptide Technologies GmbH, a peptide manufacturing operation which produces complex synthetic peptides.

Shire estimates that FIRAZYR could reach global peak sales of around $350-400m during the next decade with over half of these sales coming from the EU.

Shire chief executive Angus Russell, said: "The proposed acquisition of Jerini would bring to Shire a new drug that is highly complementary to our HGT portfolio, which we have been developing since 2005 as part of our clear, overall focus on specialist drugs. Consistent with our strategy, FIRAZYR is a product which satisfies a high unmet medical need and treats a morbidly symptomatic disorder. With orphan designation in both Europe and the US, and a launch in Europe in the second half of this year, the acquisition will bring near term revenues as well as contribute to Shire's longer term growth."