Shire Acquires Meritage Pharma

Shire has acquired Meritage Pharma for an upfront fee of $70 million and additional payments based on development and regulatory milestones. Shire gains global rights to Meritage’s Phase III compound, an Oral Budesonide Suspension (OBS) for the treatment of eosinophilic esophagitis (EoE), a rare, chronic inflammatory gastrointestinal (GI) disease. Shire obtained the rights to acquire Meritage in connection with its acquisition of ViroPharma in 2014.
 
EoE is a chronic disease with an estimated prevalence in the U.S. of ~181,000. It’s characterized by inflammation and accumulation of a specific type of immune cell, called an eosinophil, in the esophagus.
 
OBS is a viscous oral formulation of budesonide that is designed to coat the esophagus where the drug can act locally. The FDA has granted Orphan Drug Status designation to OBS for the treatment of patients with EoE.
 
Shire’s head of R&D, Philip J. Vickers, Ph.D., said, “Shire’s pipeline and strategic focus on rare diseases is further strengthened with the acquisition of Meritage, which also complements our strong GI capabilities. Adding this Phase 3-ready compound to our late-stage portfolio will allow us to leverage our expertise to further develop this important therapy that, if approved, will give hope to patients living with eosinophilic esophagitis.”
 
Meritage’s president and chief executive officer, Elaine Phillips, Ph.D., said, “Meritage has worked closely with gastroenterologists, patients and their caregivers to develop Oral Budesonide Suspension, which was the first medication to significantly reduce eosinophilic inflammation and related symptom endpoints in patients with eosinophilic esophagitis in a Phase II trial. The acquisition of Meritage by Shire, a global biotechnology company with GI and rare disease expertise, may benefit physicians and patients by helping develop OBS to potentially become the first approved treatment in the U.S. indicated for this often disabling disease.”