Merger and Acquisition SHIRE/NPS - Essay Example

Download file to see previous pages Following a lengthy process of amalgamation, it was finally on February 2015 that Shire was successful in acquiring all the shares of NPS Pharma for $5.2 billion in cash, hence leading to the acquisition of the latter by the former (Bloomberg, 2015). It is forecasted that the decision will help the company to operate successfully in the long run, besides earning a considerable amount of profit (Hot Corp. News, 2015). Focusing on the strategies undertaken for the acquisition by Shire, the company can be observed as initially focused on acquiring outstanding shares of NPS at the rate of $46 per share that may be referred as an increase of about 51 percent from its previously recorded share price (EYGM Limited, 2014b).
NPS Pharma manufactures certain drugs and provides therapies that are targeted to curing various rare diseases. This acquiring NPS would allow Shire in providing medicinal treatment and therapies in the name of Shire Plc. Hence, the acquisition of NPS will help Shire in becoming one of the leading biotechnology companies in the United States, beating competition within the industry (EDGAR, 2015). Therefore, acquisition of NPS was likely to further allow Shire to use the innovative portfolio of NPS focused on the treatment of gastrointestinal disorders along with the treatment of rare chronic diseases among the patients (DD News, 2015; EYGM Limited, 2014b).
When concerning the marketability of the two companies, each of them possesses certain strengths, which could benefit the stakeholders of both the entities, post its acquisition. For instance, ‘Gattex’, which is a medication for the treatment of short bowel syndromes, was first introduced by NPS (IBS, 2015). The company also provides medicines for the treatment of hypoparathyroidism and ‘Autosomal dominanthypocalcemia’ those are rarely found among ...Download file to see next pagesRead More