BUZZ-Shire: buyside gets behind co & its 'mini-me', BTG

** Drugmaker Shire's model for growth, whereby successful products ramped up its valuation, giving it clout to make ever more expensive acquisitions, is taking seed in smaller rival BTG (LSE: BTG.L - news)

** BTG's pioneering varicose vein treatment Varithena lifted shares (up c.25 pct in past yr); co recently bought unlisted US lung intervention co PneumRx

** "Mini Shire" is what Richard Watts, who runs Old Mutual (Other OTC: ODMTY - news) Global Investors' UK Mid Cap Fund, calls BTG; lofty valuation (c.50 times 12-mth fwd PE) could facilitate further M&A which has potential to make co very profitable, he says

** Watts' fund is 4th-top fund shareholder in BTG with 2.4 pct, TR data shows

** Tougher pricing environment in US & racy valuations spurred by M&A hopes (somewhat dashed, particularly in UK) has made some investors call time on European healthcare rally

Chart: http://link.reuters.com/cyx63w

** Allianz Global Investors' European Equity Growth Select fund topped up holdings in Shire - a "high conviction" trade - following sell-off driven by collapse of AbbVie's planned acquisition of co

** Marcus Morris-Eyton, who helps run the fund, called co's goal of doubling revenues to $10 bln by 2020 "very possible"

** Goldman, on Mar 2, hiked forecasts & TP for Shire (one of its top EU pharma picks) to reflect NPS Pharma acquisition - its biggest yet (RM (LSE: RM.L - news) : tricia.wright1.thomsonreuters.com@reuters.net)