Drug maker Shire is buying San Diego-based Lumena Pharmaceuticals for more than $260 million, a deal that expands the company's pipeline of rare disease treatments.
The Irish company, producer of Adderall XR, plans to make a cash payment at the sale's close, in addition to the $260 million in cash upfront. It could also make further payments related to Lumena's clinical trials. No specifics were mentioned.
The acquisition would add several potential medications for rare illnesses to Shire's portfolio, including drugs to treat hepatic diseases.
Flemming Ornskov, Shire chief executive, said the purchase strengthens and complements the pharmaceutical's gastrointestinal business, which generated revenue of more than $800 million in 2013.
Lumena's "attractive potential treatments may offer new hope to patients with rare cholestatic liver disease and further contribute to Shire's growth," Ornskov said in a Monday statement.
Shire said Lumena is developing drugs known as LUM001 and LUM002, both intended to treat liver diseases and improve liver function. LUM001 is in clinical development and could launch in 2016. Clinical trials for LUM002 will begin later this year.
Shire itself was reportedly the subject of takeover interest from Allergan, which has fallen into its own buyout drama with an unsolicited offer from Valeant Pharmaceuticals.
Shares of Shire dropped $1.65, or 1%, to $166.50 on midday Monday.