Drugmaker Shire in £428m bid for Belgian rival Movetis

 
City A.M. Reporter
DRUGMAKER Shire yesterday unveiled plans to buy Belgium’s Movetis for £428m in cash to boost its portfolio of gastrointestinal products and drive international growth.

The acquisition would give Shire the rights to Resolor, which treats chronic constipation in women, in 27 countries of the European Union and elsewhere. Shire estimates potential annual peak sales of Resolor of more than €300m (£248.9m).

Buying Movetis fits Shire’s long-standing strategy of building its business through acquisitions of firms selling specialist drugs. News of the latest bolt-on deal was cheered by investors, with Shire shares rising 1.31 per cent to 1,473p in London.

Chief executive Angus Russell said this year that Shire would continue to hunt out promising deals to drive the company’s growth beyond 2015.

The venture capital firms backing Movetis – Sofinnova Partners, sister firm Sofinnova Ventures, and Life Sciences Partners – support the bid, and in total institutional shareholders owning 38.9 per cent have agreed to accept the offer, Movetis said.

Shire is offering €19 for each share in Movetis, a premium of 74 per cent to Monday’s closing €10.90 share price.