Shire strikes deal with Servier to sell its cancer unit for USD 2.4B
Category: #health  By Saipriya Iyer  Date: 2018-04-17
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Shire strikes deal with Servier to sell its cancer unit for USD 2.4B

Shire Plc, a global specialty biopharma firm headquartered in Ireland, has apparently entered into an agreement with a France based pharmaceutical company, Servier Laboratories. The agreement validates the sale of Shire’s oncology business for USD 2.4 billion in currency to Servier.

Incidentally, last month, Takeda had been considering the acquisition bid for Shire, citing oncology as one of the common threads for associating itself with the Irish firm. The key officials of Takeda were of the view that the partnership between the two firms will strengthen the Japanese company’s therapeutic business including neuroscience, oncology, and gastroenterology.

The company also stated that adding Shire’s rare disease contract will further benefit Takeda’s business portfolio. However, the Japan-based firm did not make any offer to Shire, nor had it specified any intent of buying out the Irish firm. Post the declaration of selling its oncology business, the stock price of Ireland-based biopharma firm jumped 1.6% and closed at £36.63, as per The Financial Times.

Reportedly, Shire Plc states that the proceeds from the oncology business sale will help it to “raise optionality”. It has also been speculated that the company plans to return the cash from the sale to the investors through buyback.

For the record, in December last year, the board of directors of Shire had been looking out for various alternatives for selling its cancer treatment business. However, the process of sale commenced in January this year with the firm identifying numerous potential buyers across Japan, the U.S., and Europe.

Olivier Laureau, the President of Servier Labs, has proclaimed that the acquisition of the cancer therapy business will help the firm in making its presence felt across the U.S. pharmaceutical industry. He further added that this strategic business decision may also sufficiently enhance the product portfolio of Servier and will help the company make cancer treatment available to a large patient base across the globe.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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