Shire Pharmaceuticals Group PLC to buy BioChem Pharma Inc. for 20.98 times revenue

The Deal: Shire Pharmaceuticals Group PLC has agreed to purchase BioChem Pharma Inc., of Montreal Canada, for $4 billion in stock. Shire is seeking to diversify its portfolio of products. The acquisition reduces Shire's dependence on its Adderall drug for treating hyperactivity, which accounts for

Discussion: BioChem Pharma Inc., through an alliance with United Kingdom pharmaceutical giant Glaxo Wellcome, has developed 3TC, the world's bestselling HIV treatment, which is used with Glaxo's Retrovir for the treatment of AIDS; and Zeffix, which is sold in over 30 countries for the treatment of chronic hepatitis B. BioChem also makes vaccines for the flu, meningitis and pneumonia and is developing treatments for bladder cancer. BioChem Pharma has sold its diagnostics unit to focus on cancer and infectious disease treatments.

Shire Pharmaceuticals Group PLC concentrates on searching for, developing and marketing drugs. Its product roster includes treatments for cancer, such metabolic diseases as osteoporosis and central nervous system ailments, including Alzheimer's and attention deficit hyperactivity disorder. Shire Pharmaceutical Group's products, which are sold worldwide, include ADHD treatment Adderall and Carbatrol, a reformulation of a popular epilepsy treatment.