Shire makes $750m regenerative medicines acquisition
pharmafile | May 18, 2011 | News story | Manufacturing and Production, Research and Development, Sales and Marketing | Shire, regenerative medicine
Shire’s ambitions to build a regenerative medicine business will soon be realised following its $750 million acquisition of Advanced BioHealing.
The UK specialty pharma company has long eyed a move into this area and said the deal with Advanced BioHealing will provide it with a US marketed product with opportunities for further growth and world-class expertise in regenerative medicine.
Based in Connecticut, Advanced BioHealing has a manufacturing facility in California – which Shire plans to expand – and research laboratories in Tennessee. It also markets the diabetic foot ulcer (DFU) treatment Dermagraft.
Advanced BioHealing has over 400 employees in the US, including an in-house commercial team of over 150 which, like Shire, focuses on specialist physicians.
Mike Cola, president of Shire’s Specialty Pharmaceuticals business, said: “This acquisition is a strong and complementary strategic fit for Shire. We will invest in the strengths of Advanced BioHealing’s specialist commercial team, its manufacturing and its product development.
“The potential to build on the success of Dermagraft is attractive; it’s already a leading product providing a solution for a common complication suffered by diabetics in the US that, if not treated effectively, can lead to lower limb amputation and high cost to patients and society.”
Dermagraft is a regenerative bio-engineered skin substitute that assists in restoring damaged tissue. It is approved, but not yet marketed for DFU, in Israel, South Africa, and Singapore, and has been filed with Canadian regulators.
Advanced BioHealing has already enrolled patients into multi-national trials of Dermagraft for the treatment of venous leg ulcers (VLUs), with data due in the fourth quarter and a projected US filing in the first quarter next year.
Shire’s new Regenerative Medicine business unit will be led by Advanced BioHealing’s chief executive Kevin Rakin.
He said: “This is a very exciting opportunity for all of us at Advanced BioHealing to develop the business and deliver continued growth within a new environment that is highly complementary and will provide great leverage for us. We all look forward to being part of Shire.”
Due to the “modest short term financial effect” of the acquisition this year, Shire said it would have no impact to the company’s 2011guidance, which is for revenue growth in line with the 15% achieved in 2010.
Dominic Tyer
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