12:00 AM
 | 
Jul 07, 2008
 |  BioCentury  |  Strategy

Firazyr sale

After receiving a not approvable letter from FDA in April for its lead compound, Firazyr icatibant, Jerini AG found itself in a dilemma. With only €17 million in the bank, it would need to raise money both to finance the additional work required to get Firazyr on the market in the U.S. and to launch it in the EU, where the company anticipates approval this month. Jerini’s management decided that with a share price barely above €1, the best return for its shareholders lay with the sale of the company to Shire plc for €328 million ($516.6 million).

Among the options Jerini’s management team looked at were a capital increase, a royalty deal, partnering or a trade sale.

“The problem was that our share price had fallen to about €1 a share on April 24, and so any capital increase would have been very dilutive. The share price only started to go up when we announced that we were considering our strategic options,” spokesperson Stacy Wiedenmann told BioCentury.

Shire will pay €6.25 a share for Jerini, a 71% premium to the closing price the day before the acquisition was announced.

While Jerini has a pipeline of clinical, preclinical and research candidates, Shire’s clear interest is...

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