French pharma company Servier to acquire Shire oncology business for $2.4bn

Pharma acquisition news : French pharma company Servier Laboratories has made a $2.4 billion all-cash deal to acquire the oncology business of Irish biotech company Shire.

Servier acquisition of Shire oncology business is expected to help the French pharma company to establish an instant and direct commercial footprint in the US, one of the biggest biopharmaceuticals markets in the world. Outside of the US, Servier will significantly bolster its oncology pipeline and portfolio of in-market drugs.

Through the deal, Servier will own in-market products Oncaspar (pegaspargase), a component used in a multi-agent treatment for acute lymphoblastic leukemia (ALL) and ex-US rights to Onivyde (irinotecan pegylated liposomal formulation), a component used in a multi-agent treatment for metastatic pancreatic cancer post gemcitabine based therapy.

The French pharma company will also get access to a couple of early stage immuno-oncology pipeline collaborations.

Commenting on Servier acquisition of Shire oncology business, Olivier Laureau -President of Servier Group, said: “The acquisition of Shire’s oncology franchise enables Servier to meet its strategic ambitions to become a key player in oncology globally. It is a major step in the transformation of the Group, allowing us to establish a direct commercial presence in the US, as well as to strengthen our portfolio of marketed products in the ex-US territories where Servier is already present.

“Our goal is to bring these life-saving treatments to greater numbers of cancer patients around the world.

Servier intends to create a new subsidiary – Servier Pharmaceuticals which will commercialize the French pharma company’s products in the US.

Flemming Ornskov – CEO of Shire, commenting on Servier acquisition of Shire oncology business, said: “This transaction is a key milestone for Shire, demonstrating the clear value embedded in our portfolio. While the Oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire’s longer-term strategy.

“We will continue to evaluate our portfolio for opportunities to unlock further value and sharpen our focus on rare disease leadership with selective disposals of non-strategic assets”.

Servier acquisition of Shire oncology business is subject to regulatory approval after which it is anticipated to be wrapped up either in the second or third quarter of this year. The deal follows last month’s confirmation from Japan’s Takeda Pharmaceutical of its interest in acquiring Shire, reportedly for a sum of more than $43 billion.