Shire will obtain worldwide rights to UCB’s drug for attention deficit hyperactivity disorder, Equasym®, for €55 million, or about $69 million, marking the firm’s entrance into the European market for this indication. The agreement covers both the immediate- and extended-release formulations but excludes the U.S., Canada, and Barbados.
As part of this transaction, approximately 20 sales and sales management personnel will transfer to Shire. The firm already has an ADHD treatment in its pipeline called Vyvanse, which is in Phase III trials in Europe. Shire thus believes that this transaction with UCB will help it commercialize Vyvanse in territories outside of the U.S.
Shire also agreed to pay small milestone fees in 2009 and 2010 if certain net sales targets are met. In 2008 the products reportedly generated aggregate net sales of €16.9 million in these territories.
Equasym XL is approved and marketed in 10 countries and IR is marketed in four countries. The acquisition is expected to be earnings neutral for 2009 and accretive from 2010 on a non-GAAP basis.
Vyvanse was approved by the FDA as a treatment for pediatric and adult patients in July 2007. The drug brought in $319 million in 2008. Vyvanse was obtained through the $2.6 billion takeover of New River two years ago.
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