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Shire Has Scope for More M&A, Barclays Says 2014-01-22 10:24:01.314 GMT
By Sheela Sharma Jan. 22 (Bloomberg) -- Shire has scope for more M&A; expect additional corporate activity, most likely Rare Disease pipeline strengthening, to be announced during 2014, Barclays (overweight, PT 3,275p vs 2,800p previously) writes in note. * Acquisition of Viropharma limits size of future near-term deals, though with strong free cash flow generation (>$2b pa) this can be paid off within 2-3 yrs * Viropharma will add ~12% to 2015 EPS, divestment of loss- making Dermagraft adds 3%-5% to EPS; * Leaves stk on ~14x PE in 2015, 11% discount to mid-cap peers despite superior long-term EPS growth * Yday: JPMorgan said bolt-ons seen as main use of cash for EU large pharma; highlights Shire * Nov. 11: Shire announced plan to buy Viropharma for $50-shr * Jan. 17: Shire sells Dermagraft, sees impairement of ~$650m in 4Q * NOTE: Shire cash, near cash items at Sept. 30 was $1.7b: Bloomberg data
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--Editor: James Ludden
To contact the reporter on this story: Sheela Sharma in London at +44-20-7392-0395 or ssharma145@bloomberg.net
To contact the editor responsible for this story: James Ludden at +44-20-7673-2645 or jludden@bloomberg.net