Shire share price rallies as pharmco agrees £46bn deal with Takeda

Shire share price rallies as pharmco agrees £46bn deal with Takeda

Takeda Pharmaceutical agreed to buy London-listed Shire for £45.3 billion ($61.50 billion) on Tuesday after the Japanese company raised the amount of cash in its offer to secure a recommendation. It will pay $66.56 per Shire share: $30.33 in cash, with the remainder in the form of 0.839 of a new Takeda share. Shareholders in the United Kingdom group will hold about 50 percent in the enlarged drugmaker following completion of the deal, which is slated for the first half of next year. The deal represents a 59.6 per cent premium to Shire's closing price before Takeda's interest emerged.

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

Dr. Andrew Plump, Takeda's chief medical and scientific officer since 2015, said acquiring Shire will raise from three to 10 the number of late-stage clinical drugs that Takeda has in its pipeline.

Less than a week later, Shire's board recommended Takeda's takeover proposal.

In its announcement Tuesday, Takeda noted that the combined company would have a significantly increased presence in the US, the largest pharmaceuticals market in the world.

Takeda had previously said that expanding its oncology business was a significant reason why it was considering a bid for Shire, along with the desire to expand in along with gastrointestinal medicine and neuroscience.

"We can now go after targets and diseases that we couldn't previously", said Plump, who oversees Takeda's research and development operations, which are based in MA.

Tokyo-listed Takeda's shares, however, climbed nearly four per cent to ¥4,638 (£31.50).

According to Takeda, the transaction brings together companies' "complementary positions" in gastroenterology (GI) and neuroscience and positions the new entity to lead in rare diseases and plasma-derived therapies "to complement strength in oncology and focused efforts in vaccines". Takeda was already Asia's largest drug maker. Takeda is offering Shire shareholders a mixture of cash and stock.

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.

Takeda said it would maintain its global headquarters in Japan and evaluate consolidating Shire's operations into Takeda's in the Boston area, Switzerland and Singapore.

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