Sector News

Shire CEO happy to fly solo again after AbbVie deal’s collapse

November 11, 2014
Life sciences
Post-Shire-breakup, AbbVie CEO Richard Gonzalez says his company will be scouting about for other “strategic” M&A hookups. But Shire chief Flemming Ornskov isn’t interested in courting another buyer.
 
“I think we now have to focus on being an independent company,” he told Investor’s Business Daily in an interview.
 
Until AbbVie made it an offer it couldn’t refuse, that was always the Irish company’s plan, he said. Ornskov himself had hit the road to talk up the benefits of flying solo, pointing to the company’s plan to achieve $10 billion in annual sales by 2020. He figures Shire could eventually count itself among Big Biotechs the likes of Gilead, Celgene) and Biogen Idec.
 
“AbbVie increased their offer a number of times, and eventually I think the board of Shire felt that the number they were offering was of such a magnitude that they had to recommend it,” he told IBD.
 
But now? “I quickly put the AbbVie situation behind me, and I think so will the team,” he said.
 
That, of course, doesn’t mean Shire won’t be keeping an eye out for pickups of its own. Ornskov says Shire “has always been an acquisitive company,” and it has been particularly active since the Dane took the reins. Shire has made at least 6 deals–excluding the AbbVie merger–during his 18-month tenure.
 
The biggest of those was the $4.5 billion buyout of ViroPharma, and industry watchers can look to that deal for clues to Shire’s future. In that transaction, the company grabbed hereditary angioedema med Cinryze, which complemented its own Firazyr and helped spur growth of that drug–all the while helping Shire expand into the fast-growing rare-disease field and diversify beyond its core ADD business.
 
“That’s a good pattern for us: building on domain expertise we have, making a targeted acquisition, then performing very well with the acquired asset and the spillover effect on our existing asset,” Ornskov told IBD. “We’ll look for opportunities to do that in other areas.”
 
By Carly Helfand
 

comments closed

Related News

February 4, 2023

MedTrace receives U.S. patent for diagnosing the human heart

Life sciences

The U.S. Patent and Trademark Office issued a patent to MedTrace for their method of diagnosing the human heart via 15O-water PET. The patented method is the foundation of the company’s software aQuant, currently under development. Hendrik “Hans” Harms, PhD and Senior Scientist at MedTrace, and Jens Soerensen, Professor and Clinical Advisor to MedTrace, are the originators of the method.

February 4, 2023

Roche taps insider Teresa Graham for top pharma job as setbacks prompt M&A questions

Life sciences

Teresa Graham, currently head of global product strategy for Roche pharma, will become the division’s new CEO next month, Roche said Thursday. Simultaneously, Roche is elevating Levi Garraway, chief medical officer, to the executive committee.

February 4, 2023

J&J’s pharma group quietly works through global overhaul, with layoffs expected to reach multiple countries

Life sciences

Fierce Pharma has obtained internal documents and video of a town hall meeting conducted this week describing what J&J called a “comprehensive review” of its portfolio. Moving forward, J&J plans to operate its vaccines and infectious diseases outfits as one group, the executives explained.

How can we help you?

We're easy to reach