Shire Settles Claims with Investors of Former Cambridge, MA Biotech TKT
Irish drug maker Shire (LSE:SHP) has settled claims from investors of former Cambridge, MA-based Transkaryotic Therapies (TKT) for $37 per share, or $567.5 million. Those shareholders who originally objected to the 2005 takeover because they thought the price was too low, are settling for the original acquisition price of $37 per share plus interest, Shire said today in a statement.
The TKT business is now part of Shire Human Genetic Therapies (HGT), a developer of biological drugs, mostly for rare genetic diseases. Most of the former TKT operations have remained in Cambridge, and Shire is in the midst of expanding offices, labs, and manufacturing facilities in Lexington, MA. TKT developed key drugs in the Shire HGT portfolio including idursulfase (Elaprase), an enzyme-replacement treatment marketed for patients with Hunter syndrome, and agalsidase alfa (Replagal), an enzyme-replacement therapy for Fabry disease.
Shire acquired TKT for $37 per share or $1.6 billion in 2005, and investors representing the majority of shares took their $37 per share then. Shire is now paying the dissenting shareholders, who initially rejected the $37 per share price and are now accepting that amount plus interest. The total acquisition amount of $1.6 billion has not changed.
The company plans to use its cash resources to settle the claims.