Shire was down 2.1 per cent to £51.09 even as people familiar with its strategy once again played down speculation that the drugmaker might bid for Radius Health, the $2.5bn-valued osteoporosis specialist.
Speculation around Radius “looks like a red herring to us,” added Citigroup. “Osteoporosis is not a rare disease and while Shire has the ability to go to 5.5 times net debt to Ebitda [earnings before interest, taxes, and amortisation], we see integration of Baxalta, and the paying down of debt, as continuing to be management’s key near-term priorities.”