Shire Closes Transkaryotic Deal

The company also posts revenue of $426.4 million for the latest quarter.
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Shire Pharmaceuticals

(SHPGY)

said Thursday it formally completed the acquisition of

Transkaryotic Therapies

.

Shareholders of Cambridge, Mass.-based Transkaryotic and the U.K.'s Shire voted Wednesday to

approve the $1.6 billion deal, worth $37 a share to Transkaryotic shareholders.

"Shire is successfully broadening its portfolio of specialty products," said Matthew Emmens, Shire's CEO, in announcing the deal's closing along with his company's second-quarter financial results.

"The acquisition of Transkaryotic Therapies brings a new platform -- the treatment of genetic diseases -- providing for future growth and strengthening our presence in Europe," Emmens said.

The Transkaryotic deal isn't reflected in Shire's newly issued 2005 revenue guidance, which Emmens boosted to the "low-double digit" range from the previous "high-single-digit to low-double digit" range. "Shire's underlying business continues to perform strongly," he added. The Transkaryotic deal should "significantly enhance sales and EPS growth beyond 2007."

For the three months ended June 30, Shire earned $116.2 million, or 23 cents a share, on revenue of $426.4 million on a GAAP basis. That compares to a profit of $34 million, or 7 cents a share, on revenue of $321 million a year ago.

The earnings comparison is distorted by several big issues in 2004, including a $55 million loss attributed to Shire's discontinuing its vaccine business, which was sold to Canada's

ID Biomedical

(IDBE)

, and $18.2 million in reorganization costs.

Shire's second quarter was paced by its biggest product, Adderall XR, a treatment for attention deficit hyperactivity disorder, the sales of which rose 43% to $205.4 million vs. the same period last year.

Although Adderall XR enjoys the leading market share in the U.S., the product was

suspended in Canada in February. Canada's health department said it was investigating reports of sudden deaths associated with Adderall XR and its cousin Adderall. The U.S. Food and Drug Administration said in February that it didn't plan on changing the drug's label.

Shire said it continues its appeal of Canada's decision. Shire's stock rose 9 cents to close at $34.97.