Baked-In Goodness: Shire Buys New River for $2.6 Billion

Shire's $2.6 billion all-cash acquisition of its Vyvanse partner New River Pharmaceuticals is no surprise. The original deal signed by the companies in 2005 engineered Shire's motivation to buy New River in the event Vyvanse became a success. New River's unusually consolidated ownership allowed it to remain independent until the eve of Vyvanse's approval and secure a top-drawer takeout valuation.

Shire PLC’s $2.6 billion all-cash acquisition of its lisdexamfetamine dimesylate (Vyvanse) partner New River Pharmaceuticals Inc. isn’t exactly a surprise, even if the timing of the late February deal—only a few days prior to the approval of the companies’ potential blockbuster once-a-day ADHD therapy—was somewhat unexpected. [See Deal] What’s more, the deal’s valuation is another reminder of biotechs’ growing leverage over their pharmaceutical partners. Many will continue to extract top dollar from specialty and Big pharmaceutical acquirers.

That unorthodox deal timing was, according to Shire management, a reflection of its comfort level with Vyvanse’s prospects and anticipated...

Read the full article – start your free trial today!

Join thousands of industry professionals who rely on In Vivo for daily insights

  • Start your 7-day free trial
  • Explore trusted news, analysis, and insights
  • Access comprehensive global coverage
  • Enjoy instant access – no credit card required

More from Business Strategy

Late-Stage GLP-1 Drug Trials Outside The Cardiometabolic Space

 
• By 

A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.

Rising Leaders 2025: Metsera’s Whit Bernard’s Musical Path To Biotech Leadership

 
• By 

Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.

AI In Drug Discovery: The Patent Implications

 
• By 

A Q&A with DeAnn Smith, partner and co-chair of the Patent Trial and Appeal Board Proceedings Practice Group at law firm Foley Hoag.

Is Advanced AI Revolutionizing Sales Enablement In Pharma?

 
• By 

Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.

More from In Vivo

Rising Leaders 2025: Doxie Jordan, From UNC Graduate To Global Market Strategist

 
• By 

Bristol Myers Squibb executive Doxie Jordan discusses his path to global commercial leadership and the principles guiding pharmaceutical market strategy

Podcast: Brain+ CEO Discusses “Groundbreaking” Potential Of CST Assistant For Dementia Patients

 

Devika Wood, CEO of Brain+, explains the importance of developing health tech solutions for dementia and the growing need to both raise awareness and improve overall access to nondrug interventions like CST.

Behind The Buyout: Dispatches From The Dealmaking Table

 
• By 

In a challenging funding environment for biopharma, strategic dealmaking has become a critical growth engine. In Vivo explores what it truly takes to navigate high-stakes acquisitions and partnerships, drawing on insights from seasoned industry leaders.