September 9, 2010

Associated Press

Shire enters development agreement with Acceleron

Irish drugmaker Shire PLC will pay $45 million upfront to Acceleron Pharma Inc. to codevelop and market some potential treatments for muscular and neuromuscular disorders.

Acceleron, a privately held Cambridge, Mass., company, said Thursday it will work with Shire to develop ACE-031, a potential treatment for Duchenne Muscular Dystrophy in mid-stage clinical testing, and other new molecules.

Duchenne Muscular Dystrophy is a fatal muscle disease with no approved treatment. Shire will work with Acceleron to move ACE-031 into later stage testing and will receive an exclusive license for that and other molecules in markets outside North America.

Aside from the upfront payment, Acceleron could receive up to $165 million in development and sales milestone payments for ACE-031 as a Duchenne Muscular Dystrophy treatment. It also could receive an additional $288 million for other indications and molecules and royalty payments.

U.S.-traded shares of Shire rose $1.30 to $68.38 in morning trading.