U.K.-based pharmaceutical Shire said it is acquiring Premacure, a Swedish startup developing a protein replacement therapy for a rare eye disorder that can potentially cause blindness in premature infants.

While Shire did not disclose how much it is paying for the biotech and its mid-stage therapy, it says that the deal includes an upfront payment and contingent payments based on the achievement of pre-specified development and commercial milestones.

“ROP is a devastating eye disorder that can severely impact preterm infants for the rest of their lives,” says Flemming Ornskov, who will become Shire’s CEO on April 30. “This investigational protein has the potential to provide a first-in-class treatment that may minimize the development and impact of complications arising from ROP.”

The deal is Ornskov’s first as the new CEO of Shire and gives Britain’s third largest pharmaceutical entry into the new therapeutic category of neonatology. It also fits into Shire’s strategy of growth through acquisitions. Development of Premacure’s therapy will be continued by Shire’s Human Genetic Therapies Group in Lexington, Massachusetts.

Premacure’s therapy is being developed for the prevention of retinopathy of prematurity, a rare disorder that primarily affects premature infants and is one of the most common causes of visual loss in childhood. Current treatments only address the symptoms. The disorder is a complication of premature birth, which can result in a loss of growth factors, such as insulin-like growth factor 1, IGF-1, that are believed to result in lifelong complications.

IGF-1 is primarily produced by the liver and supports normal childhood growth and development.
The primary goal of the ongoing mid-stage study is to restore the IGF-1 levels in the preterm infant to those found during normal in utero development. Such a treatment is believed to promote normal development and thereby prevent the development of complications of ROP.

Approximately 87,000 premature infants are born annually in the United States, of which 14,000 to 16,000 are affected by some degree of ROP. One tenth of those infants have ROP severe enough to require medical treatment, and 400 to 600 infants become legally blind.