Navigation Links
Shire Successfully Settles Former TKT Shareholder Appraisal Rights Litigation
Date:11/5/2008

PHILADELPHIA and DUBLIN, November 5 /PRNewswire-FirstCall/ -- Shire plc (LSE: SHP, NASDAQ: SHPGY), the global specialty biopharmaceutical company, announces that it has successfully settled all pending litigation in connection with former dissenting shareholders of Transkaryotic Therapies, Inc. (TKT). Shire will pay the same price of $37 per share originally offered to all TKT shareholders at the time of the July 2005 merger, plus interest.

Background to the litigation

As previously disclosed, before completion of the merger, certain dissenting shareholders holding approximately 11.3 million of TKT shares submitted written demands for appraisal of the fair value of these shares and, as a result, elected not to accept the $37 per share merger consideration offered by Shire. A second lawsuit was brought in March 2007 alleging, among other claims, breaches of fiduciary duty by certain members of TKT's Board. The majority of that second lawsuit had been dismissed by the Court at summary judgment in June 2008. A trial date had been set for both cases on December 10th, 2008.

Details of the Settlement

Shire will pay $37 per share - the same amount per share paid to non-dissenting shareholders in July 2005 at the time of the merger between Shire and TKT - plus interest. The Delaware Chancery Court has approved dismissal of the case and Shire expects to make payment to the dissenting shareholders on November 7, 2008.

The settlement represents a total payment of $567.5 million, representing consideration at $37 per share of $419.9 million and an interest cost of $147.6m. Although not controlling for this case, under current law, the court presumptively awards interest in appraisal rights cases at a statutorily determined interest rate that is 5 percentage points above the Federal Reserve discount rate (as it varies over the duration of the case). The interest cost for today's settlement uses an interest rate that approximates this statutory rate. This interest rate has been applied on a compound basis to the $419.9 million of consideration for the duration of the time from the merger to the payment of funds. As expected, the total payment of $567.5 million will be met from Shire's existing cash resources and available facilities.

Since the time of the merger and as recorded in Shire's Q3 balance sheet published in its October 28th earnings release, Shire has provided for a potential liability in connection with this litigation, of $419.9 million plus interest of $74.6 million up to September 30, 2008. The additional interest of $73 million, less applicable taxes, will be excluded from Shire's Non GAAP earnings.

Angus Russell, Shire Chief Executive Officer stated: "We are very pleased to have reached this settlement on terms that confirm that Shire paid a full and fair price for TKT in July 2005 at $37 per share."

Notes to editors

SHIRE PLC

Shire's strategic goal is to become the leading specialty biopharmaceutical company that focuses on meeting the needs of the specialist physician. Shire focuses its business on attention deficit hyperactivity disorder (ADHD), human genetic therapies (HGT) and gastrointestinal (GI) diseases as well as opportunities in other therapeutic areas to the extent they arise through acquisitions. Shire's in-licensing, merger and acquisition efforts are focused on products in specialist markets with strong intellectual property protection and global rights. Shire believes that a carefully selected and balanced portfolio of products with strategically aligned and relatively small-scale sales forces will deliver strong results.

For further information on Shire, please visit the Company's website: http://www.shire.com.

"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

Statements included herein that are not historical facts are forward-looking statements. Such forward-looking statements involve a number of risks and uncertainties and are subject to change at any time. In the event such risks or uncertainties materialize, the Company's results could be materially affected. The risks and uncertainties include, but are not limited to, risks associated with: the inherent uncertainty of pharmaceutical research, product development, manufacturing and commercialization including, but not limited to, the establishment in the market of VYVANSE(R) (lisdexamfetamine dimesylate) (Attention Deficit and Hyperactivity Disorder ("ADHD")); the impact of competitive products, including, but not limited to, the impact of those on the Company's ADHD franchise; patents, including but not limited to, legal challenges relating to the Company's ADHD franchise; government regulation and approval, including but not limited to the expected product approval date of INTUNIV(TM) (guanfacine extended release) (ADHD); the Company's ability to secure new products for commercialization and/or development; the Company's ability to successfully integrate its stake in Jerini AG, as well as realize the anticipated benefits of the acquisition; and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2007.

For further information please contact:

Investor Cléa Rosenfeld (Rest of the World) +44-1256-894-160

Relations

Eric Rojas (North America) +1-617-551-9715

Media Jessica Mann (Rest of the World) +44-1256-894-280

Matthew Cabrey (North America) +1-484-595-8248

Jessica Cotrone (North America) +1-617-613-4640


'/>"/>
SOURCE Shire Plc
Copyright©2008 PR Newswire.
All rights reserved

Related biology technology :

1. Shire Appoints Sylvie Gregoire President of Human Genetic Therapies Business
2. Shires ELAPRASE(R) (idursulfase) Approved in Japan for the Treatment of Hunter Syndrome
3. Shire Divests Non-Core Product Portfolio to Almirall
4. Correction: Shire plc: Third Quarter 2007 results date notification November 1, 2007
5. David Mott Appointed Non Executive Director at Shire
6. Shire plc: Board Changes
7. Alba Therapeutics Corporation and Shire plc Enter Into $325 Million ex-US, ex-Japan Licensing Agreement to Develop and Commercialize AT-1001
8. Shire Expands its Gastrointestinal Portfolio Through In-Licensing Celiac Disease Phase 2 Product From Alba Therapeutics Corporation
9. FDA Approves Additional Dosage Strengths of Shires ADHD Treatment VYVANSE(TM) (lisdexamfetamine dimesylate) Which May Help Physicians Tailor Treatment for Individual Patients
10. Texas Boy Receives Wheelchair From New Hampshire Couples Recently Deceased Granddaughter
11. Shire Engages Palio
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:2/9/2016)... Feb. 9, 2016 This market research report ... and future prospects of the market in terms of ... companies engaged in the manufacture of microbiology culture media ... with a market snapshot providing the overall information of ... report. This section also provides the overall information and ...
(Date:2/9/2016)... LONDON , Feb. 9, 2016 /PRNewswire/ ... (PTP1B) Inhibitors-Pipeline Insights, 2016", report provides in ... their development activities around the Protein-Tyrosine Phosphatase ... the product profiles in various stages of ... Phase II, Phase III and Preregistration. Report ...
(Date:2/8/2016)... --> ... oncology company developing next generation cancer therapeutics that ... that chairman emeritus of Tata Sons Limited, Mr ... as part of the first close of Invictus,s ... Capital and Aarin Capital. http://photos.prnewswire.com/prnh/20150923/766442 ) ...
(Date:2/8/2016)... (PRWEB) , ... February 08, 2016 , ... Information Management ... Web product. The upgrade represents a completely new technical foundation and is so ... offer a responsive design interface, significantly increased speed for search results, a streamlined layout ...
Breaking Biology Technology:
(Date:2/3/2016)... India , February 3, 2016 ... the new market research report "Automated Fingerprint Identification System ... Search, Latent Search), Application (Banking & Finance, Government, Healthcare, ... published by MarketsandMarkets, the market is expected to be ... CAGR of 21.0% between 2015 and 2020. The transformation ...
(Date:2/2/2016)... This BCC Research report provides a ... the recent advances in high throughput ‘omic platforms ... forward. Includes forecast through 2019. Use ... opportunities that exist in the bioinformatic market. Analyze ... well as IT and bioinformatics service providers. Analyze ...
(Date:2/2/2016)... MOUNTAIN VIEW, Calif. , Feb. 2, 2016 ... diabetic retinopathy market, Frost & Sullivan recognizes US-based ... North America Frost & Sullivan Award for New ... technology provider in North America ... standard in the rapidly growing diabetic retinopathy market. ...
Breaking Biology News(10 mins):