Shire share price: Pharmco boosts gastrointestinal portfolio with Pfizer drug

Shire share price: Pharmco boosts gastrointestinal portfolio with Pfizer drug

Shire (LON:SHP) has moved to boost its gastrointestinal portfolio, inking a deal to license Pfizer Inc’s investigational inflammatory bowel disease (IBD) treatment. The move comes after the UK group, which has been looking to reduce reliance on its flagship attention deficit hyperactivity disorder (ADHA) drugs, recently acquired US blood disease specialist Baxalta.

Shire’s share price has jumped in London this morning, having gained 2.29 percent to 4,101.00p as of 10:21 BST, and outperforming the benchmark FTSE 100 index which currently stands 1.04 percent higher at 5,985.17 points. The group’s shares have lost over a fifth of their value over the past year, and are down by more than 12 percent in the year-to-date.
Shire announced in a statement yesterday that it had agreed to license global rights to all indications for Pfizer’s PF-00547659, an investigational compound, currently evaluated in early and mid-stage trials for the treatment of moderate-to-severe IBD, with late-stage trials due to start after consultation with global health authorities. IBD, which includes ulcerative colitis and Crohn’s disease, is estimated to affect more than 3.5 million people in the US, the EU, and Japan. The companies did not disclose the financial terms of the deal.

“This licensing transaction fits with Shire’s commitment to advancing research and development in select specialty areas, including areas of unmet patient need for gastrointestinal conditions such as IBD,” Howard Mayer, Shire’s Head of Clinical Development, commented in the statement.
The licensing deal comes after Shire recently wrapped up its $32-billion acquisition of Baxalta, nearly a year after it first approached the US blood disease specialist. The UK group has flagged over $20 billion in annual revenues by the end of the decade following the tie-up.
As of 10:52 BST, Wednesday, 15 June, Shire PLC share price is 4,100.00p.

By Tsveta van Son
Tsveta van Son is part of Invezz’s journalist team. She has a BA degree in European Studies and a MA degree in Nordic Studies from Sofia University and has also attended the University of Iceland. While she covers a variety of investment news, she is particularly interested in developments in the field of renewable energy.
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