By Toni Clarke
BOSTON (Reuters) - British drugmaker Shire Plc (SHP.L: Quote, Profile, Research, Stock Buzz) said on Monday it will continue to acquire drugs that it can market to specialist physicians as it moves to reduce its dependence on Adderall XR, its medicine for attention deficit hyperactivity disorder.
These will include more products for rare genetic disorders, certain gastrointestinal products and, increasingly, cosmetic treatments such as wrinkle treatments that are likely to be attractive to the aging baby-boom population.
"We believe there are a whole series of opportunities in the regenerative care business from a mergers and acquisitions and licensing viewpoint," said Matthew Emmens, Shire's chief executive officer, at the Reuters Summit in New York. "It is one of our primary objectives."
"Some of the most interesting technology is in the regrowth of skin," he said. "They are learning how to grow new cells that aren't tired yet. Your wrinkled skin goes away, and new skin gets put on."
The appeal lies also in the economics, said Emmens, as more than 70 percent of cosmetic procedures are paid for out of pocket so it is very "price insensitive."
The company is developing a drug called Juvista for wound-healing that will form the cornerstone for a regenerative medicine business, of which cosmetics will be the main part, Emmens said.
Emmens said Shire has the ability to fund acquisitions worth more than $2 billion, though that doesn't mean the company will pay those kind of sums. Most of the products being developed that Shire is interested in are in small companies, where buying the product often might mean buying the company.
In addition to developing cosmetic products, the company plans to expand its portfolio of drugs for rare diseases. Its acquisition last week of rights to three experimental products made by Amicus Therapeutics Inc(FOLD.O: Quote, Profile, Research, Stock Buzz) puts it on track to compete with Genzyme Corp(GENZ.O: Quote, Profile, Research, Stock Buzz), the world's leading maker of drugs for a group of hereditary disorders known as lysosomal storage disorders.
And Shire also plans to acquire products that can be sold through its ADHD salesforce, which currently sells Adderall XR and Vyvanse, an ADHD product Shire acquired and hopes will take over from Adderall when that product loses its patent protection in 2009.
While Emmens declined to specify the products Shire hopes to cell through its ADHD salesforce, he said they would also be aimed at central nervous system disorders in children. In additions, he said, the company is looking at developing Vyvanse for other disorders, such as hard-to-treat depression.
Emmens said it does not have plans to merge with any like-sized company, even though some companies might like to and that he does not plan to do deals of that nature that would be dilutive to shareholders.
(For summit blog: summitnotebook.reuters.com/)
(Reporting by the Reuters Health Team; Editing by Derek Caney)
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