Shire worth more than Abbvie bid, says CEO

Product sales will increase at a double-digit rate with expansion in drugs for rare diseases

Shire shareholders deserve a higher price than US drugmaker AbbVie is offering, given the company's growth prospects, Shire's chief executive officer said yesterday as he made the case to investors for spurning the $46.5 billion takeover offer.

Product sales will increase at a double-digit rate as Shire expands in drugs for rare diseases and eye maladies, rising to $6.5 billion by 2016, and the board needs to keep that in mind as it considers the company's future, Flemming Ornskov said.

The comments kick off Shire’s campaign to convince investors that the unsolicited cash-and-stock offer undervalued the drugmaker. Shire briefed investors on a call yesterday about the company’s pipeline of experimental drugs, highlighting the dry- eye treatment Lifitegrast and medicines for childhood genetic disorders.

Shire has rejected three offers from AbbVie, which is considering raising its bid again and also is understood to be weighing whether to present its case directly to Shire shareholders. – (Bloomberg)