Irish pharma giant Shire is seeking out new acquisitions, despite the fact that valuations are swelling among biopharma upstarts, CEO Flemming Ornskov said.
“There are lots of exciting opportunities out there,” Ornskov said in a recent earnings call, adding that the group will continue to seek out deals of all sizes that could help it grow into one of the world’s premiere biotech companies.
This comes, interestingly, despite the fact that Shire earnings missed estimates thanks to higher marketing costs – and that its product revenue was “broadly flat,” according to CGO Jeff Poulton. Its key revenue generator is a suite of ADHD medications, led by the popular drug Vyvanse.
The company’s revenue misses coupled with their claim to be on the hunt for acquisitions likely means that biotechs in the rare disease space could be of interest to the large drugmaker.
After all, under his two-year tenure, Flemming has focused the company on rare diseases – drawn to the high prices commanded by drugs in that space, as well as the faster regulatory processes and the high unmet need.
Shire’s been on an acquisition spree of late: Most recently, in February, it bought San Diego-based Meritage Pharma for $70 million – a biotech that develops a treatment for a rare allergic reaction that causes esophageal swelling.
This came right on the heels of a huge, $5.2 billion acquisition of rare disease drugmaker NPS Pharma in January.
Ornskov said in the call that Shire has already rejected some deals because of overinflated valuations, and that the company would approach deals in a financially disciplined manner.
“We are prepared to wait for the right opportunity at the right valuation,” he said.
