The U.K.'s Shire plc has agreed to pay $2.6 billion for New River Pharmaceuticals. The deal comes in at $64 a share with a premium of about 10 percent. The deal gives Shire the ADHD drug Vyvanse, which has been the subject of two approvable letters from the FDA and is likely to get fully cleared shortly. For Shire, the buyout provides a new product to take the place of Adderall, which loses patent protection in 2009. Shire and New River struck a collaboration pact on Vyvanse two years ago.
"Based on Vyvanse's expected profile, we believe it has the potential to be the next generation stimulant product to Adderall," says Shire CEO Matthew Emmens.
- here's the report on the buyout from Smart Money