Shire buys Lumena Pharma for at least $260 mln

LONDON Mon May 12, 2014 7:24am EDT

LONDON May 12 (Reuters) - London-listed drugmaker Shire has bought San Diego-based biopharmaceutical firm Lumena Pharmaceuticals, a company with rare disease pipeline assets, for at least $260 million.

Shire said on Monday that buying Lumena Pharma, whose programs include treatments for liver diseases, would add to its rare diseases portfolio and would help it grow its gastrointestinal business.

It said it would make an upfront payment of $260 million in cash, plus a payment for net cash at closing, as well as near-term contingent milestone payments related to ongoing clinical trials.

The company added that does not expect the acquisition to result in a change to its previously stated earnings guidance for 2014.

The deal is the latest move of consolidation in the pharmaceutical sector, which has seen Shire itself reportedly attract the interest of Allergan Inc. (Reporting by Brenda Goh, Editing by Paul Sandle)