Shire at the river’s edge

Although Shire Pharmaceuticals Group plc gained its ADHD franchise via the purchase of Richwood Pharmaceutical Co. Inc. in 1997, the company’s next four acquisitions all shared a similar theme: to lessen the company’s dependence on revenues from its ADHD drugs. That is, until last week, when Shire said it would pay $2.6 billion in cash to buy partner New River Pharmaceuticals Inc.

Shire’s rationale is that the purchase will give it full control over ADHD compound Vyvanse (formerly NRP104), which it plans to position as the replacement for Adderall XR. The latter will face generic competition starting in 2009 under a patent infringement settlement between Shire (LSE:SHP; SHPGY, Basingstoke, U.K.) and Barr Laboratories Inc. (BRL, Pomona, Calif.). ...