Shire to buy Advanced BioHealing for $750 million
Irish biopharmaceutical company Shire PLC said Tuesday it is buying Advanced BioHealing Inc. for $750 million.
Shire said it will pay for the deal from its current cash, and the acquisition will not change the company's financial outlook for 2011. The purchase requires antitrust approval.
Privately held Advanced BioHealing makes products for tissue regeneration, including Dermagraft, a skin substitute used to treat diabetic foot ulcers.
In detailing its rationale for the acquisition, Shire pointed to forecasts of more cases of diabetes, which could increase demand for Dermagraft, and to coverage of the skin substitute by Medicare and many private insurers.
Shire said Advanced BioHealing has a 5 percent patient share of treating slow-healing diabetic foot ulcers in the U.S., producing sales of $146 million last year.
U.S.-traded shares of Shire fell 42 cents to close at $93.36.