With Dermagraft Sale, Shire Jettisons Business Acquired 3 Years Ago
Summary
With Dermagraft Sale, Shire Jettisons Business Acquired 3 Years Ago Xconomy San Diego — Shire (NASDAQ: SHPG) engendered some high expectations after the Irish biopharmaceutical giant acquired San Diego’s Advanced BioHealing in 2011 for $750 million.Over the next year or so, Shire formed a new San Diego-based division—Shire Regenerative Medicine—and unveiled plans to spend $100 million on a new corporate campus that would serve as the cornerstone for a new billion-dollar business.In an e-mail, the Shire spokeswoman writes, “The RM [regenerative medicine] business unit no longer exists following the sale of Dermagraft to Organogenesis.” In the months following its 2011 buyout of Advanced BioHealing, Shire also acquired Pervasis Therapeutics of Cambridge, MA, and said it would be combined with the regenerative medicine business.Today, Mann says, “The Pervasis acquisition brought us the Vascugel program, which is still in the R&D pipe and managed out of our Massachusetts office.” Another 2012 acquisition, San Carlos, CA-based FerroKin BioSciences, is not a regenerative medicine business and remains in Shire’s drug development pipeline, Mann says.Shire said the Dermagraft sale was part of a broader reorganization that began last May, and Ornskov cited “a renewed focus on operational discipline” that came after he officially took over … Next Page »