Shire Announces Agreement for Sale of Vaccines Business

21-Apr-2004

Basingstoke, England. Shire Pharmaceuticals Group plc announces that it has signed an agreement to sell its vaccines business to ID Biomedical Corporation (IDB) , a Canadian-based biotechnology company for an aggregate phased consideration of US$120 million. In return, Shire will provide a US$100 million loan facility to help fund the development of the vaccines business, which will be repayable out of income generated on future sales. The conditions precedent to this transaction include Canadian anti-trust approval and various consents under Canadian government contracts. In the event that closing is after 30 June 2004, IDB will reimburse Shire at completion for the net cost of operating the vaccines business from that date.

The intention to exit the vaccines business was first announced by Shire in July 2003. This followed Shire's strategic review, which refocused the Company on fewer projects at a later stage of development, as well as marketed products. The vaccines business is no longer core to the Company's global strategy, and upon completion of this transaction Shire will be exclusively focused on therapeutic products meeting the needs of specialists doctors.

The transaction will be disclosed in the Shire financial statements as a discontinued operation once consent is given under the Canadian government contracts. The impact of this is that the vaccines financials will be reported separately from the continuing operations of Shire. The guidance provided in March for 2004 and beyond is relevant to the continuing operations of Shire and is thus unaffected by this transaction.

Shire Chief Executive, Matthew Emmens commented: "We are making good progress with our new strategy and today's announcement is a significant step. The vaccines business has a good pipeline of products in early stage development and IDB is an ideal partner to take this business further, building on the success and promise that has already been created. The employees stand to benefit from being part of a group that is focused exclusively on this area. We examined a number of options and we believe IDB to be the best opportunity. We look forward to the prospect of completing the transaction and working with IDB to ensure a smooth handover of the business."

https://www.bionity.com/en/news/36806/shire-announces-agreement-for-sale-of-vaccines-business.html