Fly, Shire is purchasing Viopharma because Viopharma is becoming a strong force in treatments for rare diseases. They have hundreds of millions of dollars in revenue coming in from drugs that are on the market already and are starting to grow greater revenues every quarter. They also have a number of drugs that are in clinical phases of development, and they have a small outstanding share count. The worst Shire could do with this buyout is eventually make back the money they spent on Viopharma in a few years, pretty much a very low risk buyout with huge upside potential. That is the reason Viopharma is being bought out for $50 a share.
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