Shire takes lead in PowderJect bidding
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Your support makes all the difference.Shire Pharmaceuticals has emerged as a likely bidder for PowderJect, the controversial vaccines company which yesterday confirmed it has received a number of takeover approaches.
PowderJect shares surged 64 per cent to close at 417.5p, after weekend reports that Chiron, a US biotech giant is planning to table a 500p-a-share bid that would value the company at £450m.
Shire has been looking to bolster its business in flu vaccines, and it is believed the company is one of three to have made informal approaches to PowderJect in recent weeks. Shire had no comment yesterday.
Analysts said it would make sense for Shire to add PowderJect's portfolio of vaccines to its own. Last year, Shire won a contract to supply the Canadian government with flu vaccine and to hold back enough capacity to supply a mass immunisation policy in the event of a flu pandemic. The takeover of PowderJect would give Shire access to that company's envied flu vaccine manufacturing capacity and global distribution.
Shire has grown through acquisitions to become the UK's third-largest pharmaceutical company with a portfolio built on Adderall, a drug for the treatment of hyperactivity in children. Its shares were down 7p to 507p yesterday.
Powderject, which is run by the chairman, Paul Drayson, issued a terse statement yesterday confirming only that it has received "preliminary approaches from certain parties" and that it is too early to say if a formal offer will materialise. Chiron has indicated it is willing to pay 500p-a-share, but PowderJect has vowed privately not to accept a deal at that level. Other potential bidders yesterday included Wyeth, the US pharmaceutical giant, and Baxter, another US group.
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