Shire acquires biopharmaceutical company SARcode

Pharmaceuticals group Shire has acquired California-based biopharmaceutical company SARcode to build its presence in the ophthalmology therapeutic market and add a dry eye treatment, Lifitegrast, to its portfolio.

Shire will make an upfront payment of $160m, and SARcode shareholders will be eligible to receive additional undisclosed payments if certain clinical, regulatory, and/or commercial milestones are achieved.

The transaction is expected to close in the second quarter, subject to regulatory approval in the US, and other customary closing conditions.

Shire said it expects to lauch the product in 2016 providing it achieves a positive outcome of the phase 3 clinical development programme and regulatory

approvals. It is acquiring the global rights to the product.

There is currently no approved treatment indication which includes symptoms of dry eye.

Shire's Chief Executive Designate, Flemming Ornskov, said: "The acquisition of SARcode is a demonstration of Shire's focus on continuing to build our research and development pipeline with innovative, well-differentiated assets that address significant unmet patient need.

"This acquisition and our recent acquisition of Premacure have the potential to provide the basis for an attractive ophthalmology business for our company, given the significant growth opportunities in this therapeutic area as well as Shire's proven expertise in specialist markets."

The share price edged 0.05% lower to 1,977p by 15:40.

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