UPDATE: Barclays Capital Downgrades NPS Pharmaceuticals After Announced Acquisition By Shire

In a report published Tuesday, Barclays Capital analyst Geoffrey Meacham downgraded the rating on

from Overweight to Equal-Weight, and lowered the price target from $50.00 to $46.00. In the report, Barclays Capital noted, “We are downgrading NPSP shares to Equal Weight from Overweight following the announcement Sunday that Shire is acquiring NPS for $46/sh. The all-cash deal implies a valuation of $5.2B for NPS and makes strategic sense, in our view, given the earnings potential of NPS's lead assets (Gattex and Natpara) which should be further enhanced under the Shire umbrella with the associated synergies (e.g., commercial presence in gastrointestinal disease, experience launching orphan drugs, and global footprint). Given the strategic value, the high level of synergies, and Shire's willingness to complete a deal in advance of the Natpara January 24 PDUFA date without a material adverse change clause, we see a high probability the transaction will be completed with little chance of another bidder emerging with a superior offer. Given that NPSP shares already largely reflect the proposed deal price, we are lowering our rating to Equal Weight from Overweight and our price target from $50 to $46.” NPS Pharmaceuticals closed on Monday at $45.35.