Takeda Pharma to Buy Rare Disease Drugmaker Shire for $62 Billion

09 May, 2018, 00:36 | Author: Lora Ball
  • Takeda Pharma offers $62 billion in takeover of Britain's Shire

In one of the biggest deals in the pharmaceutical industry's history and the biggest worldwide takeover by a Japanese company, Takeda Pharmaceutical today struck a deal to buy its larger Irish rival Shire Plc for $62 billion (£46 billion).

Shares in Takeda closed up 3.99 percent at 4,638 yen just before the announcement, which had been widely expected, while in London trade Shire was up 4.77 percent at £40.40.

In a separate statement, it said it would fund the deal with a bridge loan facility of almost $31 billion.

Takeda has focused on developing and commercialising innovative therapies that address unmet clinical needs in gastroenterology, oncology and neuroscience plus vaccines.

In particular, Shire will give Takeda access to research and development in fields the Japanese firm has long sought, including digestive systems, mental illness and rare diseases.

If he gets past that hurdle Weber will then need to knit together a new top 10 - by sales - global pharma company while carving out $1.4 billion in cost synergies. The companies expect the deal to close in the first half of 2019.

As part of the merger agreement, Shire shareholders will be entitled to receive $30.33 in cash for each Shire share owned and 0.839 shares either 0.839 new Takeda shares or 1.678 new Takeda ADSs, according to Takeda.

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Takeda said it represents a premium of around 64% compared with the price of its shares in late March, when rumours of Takeda's interest began to swirl.

Takeda has not decided whether to keep the headquarters in the northern suburb after it completes one of the biggest deals in the history of the pharmaceutical industry.

The acquisition is expected to become effective in the first half of next year, it said.

Takeda, like many Japanese companies, been expanding overseas to compensate for slowing growth at home.

Takeda, which has seen its market value slide to US$34 billion since announcing its interest, is taking over a much bigger rival.

"Shire's highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda", Christophe Weber, Takeda's chief executive officer, said in a statement.

In a separate statement today, Takeda said it will continue to focus on growing its oncology portfolio, which along with its hematology holdings expanded a year ago when Takeda acquired Ariad Pharmaceuticals for $5.2 billion.

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