Billion dollar therapy

has signed a definitive agreement to acquire Transkaryotic Therapies (TKT) in an all cash transaction valued at $37 per outstanding TKT share, or approximately $1.6 billion.

TKT is a US-based biopharmaceutical company researching, developing and commercialising therapeutics primarily for the treatment of rare genetic diseases caused by protein deficiencies.

The acquisition of TKT will allow Shire to diversify its revenue base and expand its specialty expertise into Enzyme replacement therapy, or ERT.

TKT currently has one marketed product, Replagal, an enzyme replacement therapy product currently approved and marketed to treat patients with Fabry disease, a second product approved for marketing, Dynepo, an erythropoietin (EPO) used for the treatment of kidney disease-related anemia, and many additional products in various stages of development.

The transaction has been unanimously approved by Shire’s board of directors and has been approved by a majority of TKT’s directors.

However, it is still subject to approval by the shareholders of both companies, as well as regulatory approvals and other customary closing conditions

In 2004, TKT achieved total revenues of $78.1 million and a net loss of $65.9 million. As of December 31, 2004 TKT had $155 million in cash and cash equivalents and total debt of $94.0 million in the form of convertible notes and net assets of $194.3 million.