Shire takes major hit on sale of Dermagraft therapy

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

Shire (SHPG) is taking a $650M loss on its Dermagraft treatment for the treatment of diabetic foot ulcers after selling the therapy to U.S.-based Organogenesis.

Shire isn't receiving any money up front, although it could get as much as $300M in revenue milestone payments.

Shire acquired Dermagraft when it bought Advanced BioHealing for $750M in June 2011, but soon after the deal, the FDA rejected the drug for treating leg ulcers.

SocGen analysts are happy that Shire is getting rid of a "non-core, loss-making product."

Shares are +0.6% in London. (PR)