On April 19, 2007 Shire completed its acquisition of New River by way of a short-form merger, in an all-cash transaction. The acquisition was effected by merging Shuttle Corporation, an indirect wholly owned subsidiary of Shire, with and into New River, with New River continuing as the surviving corporation. As consideration, Shire paid to New River's shareholders US$64 in cash for each share of New River common stock outstanding at the time of the acquisition.
The acquisition of New River allows Shire to capture the full economic value of VYVANSE, and gain control of the future development and commercialisation of this product.
VYVANSE for ADHD in paediatric patients was approved by the FDA on February 23, 2007 and Shire received notification from the DEA of the final Schedule II classification for VYVANSE on May 3, 2007.
The acquisition of New River has been accounted for as a purchase business combination in accordance with IFRS 3. Under the purchase method of accounting, the assets and liabilities of New River are recorded at their fair values at the acquisition date. The financial statements of Shire issued after the completion of the acquisition reflect these fair values, with the results of New River being included within the Consolidated Income Statement from April 19, 2007.
Total consideration, including amounts payable in respect of stock
options, share appreciation rights ("SARs"), warrants over New River's
common stock and costs directly attributable to the business combination
was approximately US$2.6 billion at the price of US$64 per share of New
River's common stock, as analysed below:
Cash consideration for 37.1 million outstanding shares of New
River common stock at US$64 per share (net of 1.5 million of
common stock repur
|SOURCE Shire plc|
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