Takeda to buy London-listed drugmaker Shire for over GBP 45 billion
Category: #health  By Shikha Sinha  Date: 2018-05-08
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Takeda to buy London-listed drugmaker Shire for over GBP 45 billion

Japan’s pharmaceutical industry major Takeda in its recent announcement has unveiled that it will be acquiring its London-listed larger rival, Shire Plc for more than GBP 45 billion (USD 62 billion). Reportedly, the 46% cash & 54% stock purchase deal will see Shire investors owning about half of the combined entity.

Sources familiar with the matter reveal that the deal is expected to transform Takeda into a leading drug maker in the lucrative business sphere of rare diseases, while strengthening its foothold in the U.S. market.

The companies revealed in a joint statement that as per the terms of the deal, Shire shareholders will receive USD 30.33 in cash and either 1.678 Takeda ADS for each share or 0.839 new Takeda shares.

If industry experts are to be believed, the acquisition will be the largest till date for a Japanese company and will be pushing Takeda amidst the top ranks dominated by renowned pharmaceutical industry giants. They also deem that via this strategic deal, several market biggies and drugmakers will also be looking to enhance their product pipelines through potential developments by the younger firms.

Reports reveal that the combined entity will be a forerunner in the treatments in oncology, neuroscience, rare diseases and blood-derived therapies used in hemophilia and other serious conditions, and gastroenterology.

Analysts deem that Takeda’s announcement of acquiring Shire comes on the heels of the flurry of transactions witnessed across the pharmaceutical industry including GlaxoSmithKline Plc’s agreement to takeover Novartis AG’s stake as a part of their consumer health JV. Merck KGaA on other hand has reached an agreement to vend its over-the-counter division to Procter & Gamble Co., while Sanofi is another in the line that plans to sell its generic-drug business to Advent International Corp.

Takeda claimed that it expects USD 1.4 billion in overall savings from the third consecutive year, as the deal is expected to save over USD 600 million in duplicate R&D costs.



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Shikha Sinha

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Shikha Sinha

Shikha currently manages content operations for a series of news and business portals including MSF, Algosonline, and the like. An electrical & electronics engineer by education, she has prior experience in content & technology writing, content marketing, market resea...

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