Shire breaks cover on $30bn takeover bid for drugmaker
Published 05/08/2015 | 02:30
Drugmaker Shire said yesterday it was seeking to buy Baxalta, a company spun-off by Baxter International last month, for $30bn (€27bn) to create a global rare diseases giant.
The London-listed group went public with its approach after the US firm turned it down. Shire said its unsolicited all-share offer valued each Baxalta share at $45.23, based on August 3 market prices. Shares in Baxalta jumped 12.7pc to $37.35 in early US trading.
The Illinois-based firm, which has a staff of around 16,000, develops biotech treatments for rare blood conditions, cancers and immune system disorders. It had revenue of $6bn in 2014.
Baxalta offers Shire a promising range of new products to complement its growing portfolio of high-priced treatments for rare, or orphan diseases, said Cowen & Co analyst Christopher Hamblett.
"The deal makes a lot of sense because Shire would be getting some highly durable growth assets," he added.
Shire said it would create a unrivalled rare diseases champion with product sales of around $20 billion by 2020 and double-digit percent sales growth.
The move is the latest in a wave of mergers and acquisitions in the healthcare sector since the start of 2014, stretching from large drugmakers buying up smaller rivals to consolidation among makers of generic medicines and tie-ups between insurers.
Shire's offer of 0.1687 Shire American depositary receipts per share, which represents a premium of 36pc over Baxalta's stock price on August 3, would give the US firm's shareholders about 37pc of the combined group.
Shire chief executive Flemming Ornskov said he had gone public with its plan after Baxalta's board knocked back an approach. (Reuters)