Shire to acquire Transkaryotic

Shire (LSE:SHP; SHPGY) will acquire TKTX for $1.6 billion in cash, or $37 per share. The price is a 22% premium to Wednesday's close of $30.44. The deal is expected to close in the third quarter.

On a conference call, SHP said the deal grew out of initial discussions about in-licensing TKTX's Dynepo gene-activated epoetin delta to treat anemia associated with renal disease. The compound was approved in the EU in 2002 and is expected to be launched in the first half of 2006. If the acquisition does not go through for specified reasons, SHP will in-license Dynepo for a one-time payment to TKTX of $450 million. ...