Monday, July 25, 2005

Pharma

TKT stockholders OK acquisition by Shire

Shareholders of Transkaryotic Therapies Inc. of Cambridge Wednesday approved narrowly an acquisition by Shire Pharmaceuticals Group plc. for $37 per share in cash, or $1.6 billion in aggregate value.

The deal is expected to close today.

The approval, which passed with a 52 percent affirmation, marks the end of a stormy period of shareholder discord. Several of TKT's institutional investors questioned whether the price was high enough.

CEO Michael Astrue this spring resigned when the board initially announced its decision to accept Shire's proposal. Astrue had helped bring the company back from financial crisis.

The company's shares had been selling for close to $80 in 2000 but fell to about $5 in 2003 after the Food and Drug Administration questioned data it submitted in connection with new drugs it was developing.

The company's share price rose after Astrue took the reins.

TKT is a biopharmaceutical company focused on researching, developing and commercializing treatments for rare diseases caused by protein deficiencies. The company markets Replagal, an enzyme replacement therapy for Fabry disease, and is developing treatments for Hunter syndrome and Gaucher disease.

TKT employs 400. Shire, with offices in the United Kingdom, has 2,000 employees.