Published On: Sat, Apr 21st, 2018

Takeda offers $62bn to acquire Irish rare disease company Shire

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Japanese pharma company Takeda Pharmaceutical has proposed to acquire Shire, an Ireland-based rare disease company for $62 billion after Botox-maker Allergan scrapped its plans of making a rival bid.

Friday’s offer from Takeda Pharmaceutical is the fourth it has made to acquire the rare disease company. Recently, Shire had rejected three offers from the Japanese pharma company, saying that it had undervalued its business, growth prospects and drug pipeline.

However, Shire said that it is considering the fourth offer from Takeda Pharmaceutical, which is nearly 7% more than the first proposal made on 29 March.

Under the new offer, the Japanese pharma company proposes to pay £47 per share – made up of £21 per share in cash and £26 per share in new Takeda shares.

Takeda Pharmaceutical Head Office in Tokyo

Takeda Pharmaceutical Head Office in Tokyo. Photo courtesy of Lombroso/Commons.wikimedia.org.

The Japanese pharma company stated: “Takeda believes that the Improved Proposal represents a highly compelling opportunity for Shire shareholders, which reflects a further increase in value and a material increase in the cash component of the consideration mix.

“On completion of the proposed acquisition, Shire shareholders would hold a very meaningful stake in a leading global biopharmaceutical company and benefit from the material synergies expected to be derived from the acquisition.”

Takeda Pharmaceutical’s third proposal which was turned down saw it offer £46.50 per each share in a cash-cum-stock deal.

The Japanese pharma company has been attempting to seal a deal with Shire since late March as it believes that the acquisition of the rare disease company will grow its capabilities in offering therapies in the fields of oncology, gastrointestinal and neuroscience, apart from boosting its R&D strategy further on important therapeutic areas.

Takeda Pharmaceutical did not reduce its bid since its first attempt despite Shire entering into a $2.4 billion deal, earlier in the week, to divest its oncology business to French pharma company Servier.

As per Takeda Pharmaceutical’s if its proposal is accepted, then the Irish rare disease company will hold a stake of 49% in the enlarged company to be headquartered in Japan.

Shire stated on the Japanese pharma company’s fourth offer as: “The Board of Shire is considering its position with respect to the Fourth Proposal and will issue a further announcement in due course.”

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