Shire exercises option to acquire Meritage

Shire plc (LSE:SHP; NASDAQ:SHPG) exercised its option to acquire Meritage Pharma Inc. (San Diego, Calif.) for $70 million up front. Meritage is eligible for $175 million in milestones.

The option was triggered by the receipt of Phase IIb data for Meritage's oral budesonide suspension (OBS) to treat eosinophilic esophagitis (EoE) and an agreement with FDA on an acceptable Phase III endpoint. Shire spokesperson Jessica Cotrone told BioCentury the company's conversations with FDA will determine its Phase III development timeline for OBS, which has Orphan Drug designation in the U.S. for EoE. ...