UK drugmaker Shire Plc (SHP.L) said it would buy privately held biotechnology firm FerroKin BioSciences for up to $325 million, including an upfront cash payment of $100 million, to expand its portfolio of blood disease treatments.
The deal terms also included potential milestone payments of up to $225 million.
U.S.-based FerroKin develops treatments for patients with iron overload and its main drug candidate FBS0701 is currently in mid-stage clinical trials.
FBS0701 is a once-daily use capsule that is being tested as a treatment for iron overload due to chronic blood transfusions in adults and children.
"We hope to use our expertise in hematology coupled with our proven ability to progress products through the development pipeline to bring FBS0701 to the global marketplace," Shire said in a statement.
Shire Plc (SHP) fell in London trading after withdrawing a U.S. application for approval of its Replagal drug for a rare genetic disorder. The Food and Drug Administration, which was scheduled to make a decision on the drug in May, will probably now require additional trials of Replagal before approving it as a treatment for Fabry disease, the Dublin-based company said in a statement late yesterday. “An approval of Replagal for U.S. patients would only be possible in the distant future,” Shire said in the statement. The decision won’t affect financial forecasts for this year, the company said.