Shire scoops up Pervasis Therapeutics

Shire scoops up Pervasis Therapeutics

April 12, 2012

By Galen Moore, Boston Business Journal

Shire plc (Nasdaq: SHPGY) has acquired Pervasis Therapeutics, a Cambridge, Mass., biotech, in a deal reportedly worth up to $200 million.

The asset acquisition adds Pervasis’ endothelial cell technology to Shire’s regenerative medicine business, Shire said in a news release, Thursday. Pervasis was developing PVS-10200, a potential treatment for patients with peripheral arterial disease (PAD). The buy fits strategically with Shire’s Dermagraft product, indicated for diabetic foot ulcers, the company said.

A Shire spokeswoman said Pervasis deal is valued in the “single-digit millions,” up-front, but could be worth up to nearly $200 million in milestone payments. That makes Pervasis the third nine-figure biotech acquisition by Shire in less than a year. The company says the deal complements is May, 2011 acquisition of Advanced BioHealing, a Connecticut biotech. That deal was billed at up to $750 million. In March, Shire announced the acquisition of FerroKin BioSciences of California for up to $350 million.

Ireland-based Shire has its Human Genetic Therapies business presence in Lexington, Mass.

Pervasis had raised at least $10 million in venture capital financing from a trio of Massachusetts VC firms: Flagship Ventures, Highland Capital Partners and Polaris Venture Partners are all investors.

According to Shire’s news release, the Pervasis acquisition also establishes a relationship between the Irish biopharmaceutical company and Elazer Edelman, a professor at Massachusetts Institute of Technology and Harvard Medical School, and a cardiologist at Brigham and Women’s Hospital in Boston.