There are heavy speculations flouting in the air of Wall Street concerning the acquisition of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) based in US by the pharmaceutical giant Shire plc (NASDAQ:SHPG). These acquisition speculations and rumors have played a vital part in elevating the stock price of BioMarin Pharmaceutical Inc. (NASDAQ:BMRN)by approximately 5.3%. As a corollary, its price now amounts to $121 per piece.
As a matter of fact, these acquisition speculations are indeed supported by certain factors which enable it to be deemed true. A major factor in this context, reiterating this assumption is the recent acquisition of NPS Pharmaceuticals, Inc. (NASDAQ:NPSP) by Shire plc. (NASDAQ:SHPG). Through this acquisition, the latter company was enabled to further enhance its rare disease profile. It should be interesting to note here that BioMarin Pharmaceuticals Inc.(NASDAQ:BMRN) also specializes in coming up with drugs to treat rare genetic diseases.
So far, the company has been showing a considerable financial growth. The results from the previous quarter delineated revenue of $230.9 million. This figure reflects the company’s considerable YoY growth, amounting to almost 57%. Furthermore, an elevation in the company’s share price can also be observed amounting to approximately 67%. The major reasons in play behind this growth might be the company’s focus on the treatment of rare disorders. This very factor alone can go a long way in escalating the revenue of Shire plc(NASDAQ:SHPG).
Sources claim that Shire plc(NASDAQ:SHPG)offered a deal to BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) yet, how did the deal turn out and what was the latter company’s reaction to this proposed offer of acquisition is still unclear. This acquisition deal would turn out to be completely transformational for the company. This is because the company’s worth amounts to nearly $18 billion. The Chief Executive Officer of Shire plc(NASDAQ:SHPG),FlemmingOrnskov has signed many such deals which culminated in acquisition of many companies, however the acquisition of BioMarin Pharmaceutical Inc.(NASDAQ:BMRN) would be costing the company a hefty amount.
Lately, pharmaceutical industry has been undergoing many mergers and acquisitions. As a corollary, to make sure that its deal culminates successfully, Shire plc(NASDAQ:SHPG)will probably have to pay a notable premium.
Interestingly, it appears as if Shire plc(NASDAQ:SHPG) is not the only company with its eyes on BioMarin Pharmaceuticals Inc. (NASDAQ:BMRN). Last year Roche Holding Ltd. (ADR) (OTCMKTS:RHHBY), which is based in Switzerland, also showed signs of interest in this acquisition and for this very purpose BioMarin Pharmaceuticals Inc.(NASDAQ:BMRN) was evaluated. However, eventually Roche Holding Ltd. (OTCMKTS:RHHBY) switched from the former company and culminated its acquisition deal with Intermune Inc. (NASDAQ:ITMN). This acquisition was brought about at $7.4 billion.
Yet, there is a strong likelihood that Roche Holding Ltd.(OTCMKTS:RHHBY) might start showing interest in BioMarin Pharmaceuticals Inc. (NASDAQ:BMRN)again as a consequence of the strong interest shown by Shire plc(NASDAQ:SHPG).
These rumors and speculations were neither addressed nor confirmed by both Shire plc(NASDAQ:SHPG)and BioMarin Pharmaceuticals Inc.(NASDAQ:BMRN).
