Shire (SHPG) announced that it has reached a final agreement with the U.S. Attorney's Offices for the Eastern District of Pennsylvania and the Northern District of Illinois, all 50 states and the District of Columbia, thereby resolving its previously disclosed civil investigation of certain sales and marketing practices.
The sales and marketing practices relate to Shire’s key drugs like Vyvanse, Adderall XR, along with Daytrana, Lialda and Pentasa.
Under the agreement, Shire is required to pay $56.5 million along with interest, fees and costs, to resolve the issues investigated by the government. In addition, the settlement includes the resolution of two related qui tam complaints filed against the company along with a voluntary disclosure related to Lialda and Pentasa.
Moreover, Shire will pay $2.9 million to resolve a previously disclosed civil complaint filed by the State of Louisiana. The complaint alleged that Shire had violated laws related to the sales, marketing and promotion of Adderall, Adderall XR, Vyvanse, Daytrana and Intuniv.
Last week, Shire announced that the FDA has accepted its supplemental New Drug Application for Vyvanse with priority review for the indication of binge eating disorder in adults. Vyvanse is already approved for attention deficit hyperactivity disorder (ADHD).
We remind investors that Shire finally agreed to AbbVie’s (ABBV) acquisition proposal in Jul 2014. Under the terms of the offer, shareholders of Shire will receive £53.19 per Shire share (£24.44 in cash and 0.8960 ordinary shares of the merged company).
Shire currently carries a Zacks Rank #2 (Buy). Other well-placed stocks in the broader health care sector include Jazz Pharmaceuticals (JAZZ) and Pacira Pharmaceuticals (PCRX). Both carry a Zacks Rank #2 (Buy).
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