Shire supposedly wants to make a cash offer to buy NPS Pharmaceuticals and its rare disease portfolio for around $40 per share. This would be a 46% premium to its Thursday closing price (though the rumor caused a 24% increase today alone!). Strategically, this would add to Shire's orphan and rare disease portfolio and the buy may also help dissuade unwanted suitors from making a bid for Shire itself --- which is always the subject of purchase rumors.
Shire purchased ViroPharma last year to build in this space, and NPS' lead therapeutic, Gattex, would be attractive --- as would its $295,000 per patient price! Ironically, this deal may be significantly motivated for its possible effects at making Shire a less attractive takeover target. Shire just turned down Allergan who probably was trying to buy Shire for the same reasons as it tries to fend off Valeant's unwanted bid --- plus Shire would have offered Allergan to pursue a tax inversion strategy similar to what Pfizer had in mind when it was after AZ.
The more things go around the more they stay the same. See Fierce Biotech.
Posted by Bruce Lehr May 30th 2014.