Shire completes acquisition of New River

By Lisa Kerner

Charlotte, N.C., April 20 - Shire plc's subsidiary, Shuttle Corp., completed its acquisition of New River Pharmaceuticals Inc. via a short-form merger, following the successful completion of a tender offer on Thursday.

New River merged with and into the subsidiary and remains the surviving corporation.

Shire acquired 96.4% of New River's outstanding common stock for $64.00 cash per share.

"With this acquisition completed, Shire can now drive the launch and future development of Vyvanse and gain the full economic benefits of the drug," Shire chief executive officer Matthew Emmens said in a company news release.

"Vyvanse is a novel drug and will provide patients, parents and physicians with real benefits that differentiate this compound from other ADHD products. The New River acquisition continues our leadership position in the growing U.S. ADHD market, improves our operating margins, adds to our pipeline, significantly enhances our earnings growth from late 2009 and delivers on our overall global growth strategy."

Shire shareholders approved the tender offer and an increase in total borrowings of the Shire group to $4 billion on Monday. The company previously stated that it planned to fund the transaction through $2.3 billion in new debt financing and an accelerated private placement worth about $800 million.

New River and Shire announced a definitive merger agreement on Feb. 20.

Shire is a specialty pharmaceutical company located in Basingstoke, England.

New River is a Radford, Va.-based pharmaceutical company.

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