ID Biomedical Acquires Shire's Vaccine Business for $120 Million

ID Biomedical Corp. and Shire Pharmaceuticals Group, plc, have signed an asset purchase agreement related to the sale of Shire's vaccine business to ID Biomedical. The transaction, which is conditional on approval by the Canadian government and regulatory approvals, is expected to close by June 30, 2004. Under the terms of the agreement, ID Biomedical will acquire all of Shire's vaccine assets for a cash payment of $60 million and subscription receipts allowing Shire to acquire approximately 5.4 million common shares of ID Biomedical, representing additional consideration of $60 million.

Key Takeaways:

ID Biomedical will acquire Shire's vaccine business, including a 120,000 sq. ft. influenza vaccine manufacturing and fill/finish plant in St. Foy, Quebec, which will be expanded to 200,000 sq. ft. and increase manufacturing capacity to over 40-50 million doses per year.
The acquisition will include a 68,000 sq. ft. Vaccine Research Centre in Laval, Quebec, and a 60,000 sq. ft. fully integrated vaccine development and pilot manufacturing facility in Northborough, Massachusetts.
ID Biomedical and Shire will have the rights to require the repurchase of subscription receipts for cash in certain circumstances under the direct control of ID Biomedical.
Shire will provide ID Biomedical with a loan facility of $100 million to finance the continued development of the vaccine business over a 4-year period.
ID Biomedical's CEO, Anthony Holler, stated that the acquisition will position the company to become a leading flu vaccine company with the potential to capture significant market share.
Shire's vaccine business generated sales of approximately CDN$36 million in 2003.

Statistics:

$60 million: Cash payment by ID Biomedical for Shire's vaccine assets.
$60 million: Additional consideration in the form of subscription receipts allowing Shire to acquire approximately 5.4 million common shares of ID Biomedical.
18 months: Exercise period for subscription receipts.
120 days: Delay period after closing before the exercise period commences.
US$100 million: Loan facility provided by Shire to ID Biomedical to finance vaccine business development.
4 years: Repayment period for loan facility.
CDN$36 million: Revenue generated by Shire's vaccine business in 2003.
40-50 million: Expected manufacturing capacity from St. Foy facility after expansion.
5.4 million: Number of common shares of ID Biomedical to be acquired by Shire through subscription receipts.

Sources:

NewsRx.com & NewsRx.net, May 17, 2004