Shire has signed an agreement to acquire FerroKin BioSciences, Inc. for an upfront payment of $100 million in cash, plus potential milestone payments totaling $225 million based on development, regulatory and sales targets. The acquisition expands Shire’s hematology business with Phase II drug FBS0701, a once-daily oral capsule in development for the treatment of iron overload due to chronic blood transfusions in adults and children. FBS0701 has received Orphan Product designation from both the FDA and EMA.

Shire’s Specialty Pharmaceuticals senior vice president of Hematology, Ross Murdoch, said, “There remains a significant unmet need for a once-a-day, oral iron chelator in a convenient dosage form for the treatment of transfusional iron overload with a better safety profile than currently available treatments.  We believe FBS0701 has the potential to meet that need.  We hope to use our expertise in hematology coupled with our proven ability to progress products through the development pipeline to bring FBS0701 to the global marketplace. This acquisition marks an important step for Shire in building a business that serves the growing needs of specialty hematologists and their patients.”

FerroKin BioSciences’ key employees, including founder and chief executive officer, Dr. Hugh Young Rienhoff, Jr., will provide consulting services to Shire during the transition period. “An important factor for FerroKin BioSciences in agreeing to this transaction was Shire’s drive, capability and vision to bring new products to the hematology market that promise to raise the standard of care for patients.  In Shire’s hands, FBS0701 has greater potential to fulfill that promise,” said Dr. Rienhoff.
The closing is subject to customary conditions