Shire announces Meritage Pharma acquisition

Shire has announced the acquisition of the privately-held Meritage Pharma for an upfront fee of $70 million (45.08 million pounds).

The firm obtained the rights to acquire Meritage as part of its acquisition of ViroPharma in 2014. The deal gives Shire global rights to a phase III-ready compound called oral budesonide suspension (OBS).

Designed for the treatment of adolescents and adults with eosinophilic oesophagitis, a rare, chronic inflammatory gastrointestinal disease, the addition of OBS strengthens Shire's late-stage pipeline.

This promising compound was the first medication to significantly reduce eosinophilic inflammation and related symptom endpoints in patients with eosinophilic oesophagitis in a phase II clinical trial.

Dr Philip Vickers, Shire's head of research and development, said: "Shire's pipeline and strategic focus on rare diseases is further strengthened with the acquisition of Meritage, which also complements our strong gastrointestinal capabilities."

This comes after the company completed its $5.2 billion acquisition of NPS Pharma earlier this month.