Shire to acquire ViroPharma for $4.2B

|About: Shire PLC (SHPG)|By:, SA News Editor

Shire (SHPG) has agreed to acquire ViroPharma (VPHM) for $4.2B in a deal that will fit into the U.K. company's strategy of expanding its rare-disease portfolio and create a revenue base in the area of $2B.

ViroPharma provides the treatment Cinryze for the prophylactic treatment of hereditary angioedema (HAE), which is when the deeper layers of the skin swell due to a build-up of fluid. Shire said Cinryze will complement its Firazyr injection for acute HAE.

Shire will pay $50 a share for ViroPharma, or a 27% premium on Friday's closing price of $39.38.

Shire expects annual cost synergies of around $150M by 2015, and that the deal will immediately add to its earnings after completion.

Shire will finance the deal from its cash resources, as well as from existing and new bank facilities. (PR)