Economy

Takeda Pharmaceuticals offers $61 bn for Shire

Takeda Pharmaceuticals offers $61 bn for Shire

Botox maker Allergan (AGN.N) and Japan's Takeda Pharmaceutical (4502.T) are in competing talks to acquire Shire (SHP.L), after the rare diseases specialist rejected a third takeover bid from Takeda worth almost $63 billion (44.40 billion pounds).

Shire confirmed that it had received three conditional proposals from Takeda but said they significantly undervalued the company's growth prospects and its new drug pipeline.

"Discussions between the parties regarding a potential offer are ongoing", the company said on Thursday. Regardless of the offer's outcome, the company said it remains "well-positioned to continue its transformation, delivering portfolio growth while strengthening its pipeline and boosting profitability".

The firm's French CEO Christophe Weber is trying to turn Takeda into a global pharma company, and believes the Shire merger would accelerate this process.

The Third Proposal also comprised 28.75 pounds per share in new Takeda shares, to be listed in Japan and in the USA through an ADR listing, and 17.75 pounds per share in cash, representing a potential value of 46.50 pounds per share and approximately 44 billion pounds for the total issued and to be issued share capital of the Company.

Takeda expanded its oncology and hematology portfolios previous year by acquiring Ariad Pharmaceuticals for $5.2 billion.

More news: Manchester City dominate PFA Premier League team of the year

Buying Shire would be transformational for Takeda but would be a big financial stretch, since the company is worth in excess of $10 billion more than the Japanese group. The first valued Shire at up to £44.00 per share, the second was £45.60 and the third was £46.50.

The First Proposal comprised 28 pounds per share in new Takeda shares, to be listed in Japan and in the United States through an ADR listing, and 16 pounds per share in cash, representing a potential value of 44 pounds per share and approximately 41 billion pounds for the total issued and to be issued share capital of the Company.

Takeda's reported offer comes amid a flurry of transactions in the pharmaceutical sector, marked by GlaxoSmithKline Plc's $13 billion agreement last month to buy out Novartis AG's stake in the two companies' consumer-health joint venture. Now that Allergan has admitted its interest, it has until May 17 to do the same.

Shire shares, which are listed in London, surged as much as 7.6 percent after the report, which cited unidentified sources. Based on Takeda's current market capitalisation, Shire shareholders would own approximately 50 per cent. of the enlarged Takeda.

Shire said in January that it would run its attention deficit hyperactivity disorder (ADHD) business, which consists mainly of its blockbuster drug Vyvanse, separately and possibly seek a separate listing.

Shire on Monday agreed to sell its Oncology business to France-based pharmaceutical company Servier SAS for USD2.4 billion in cash.


  • Allegri: Juve happy to be four points clear

    Allegri: Juve happy to be four points clear

    Lorenzo Insigne leveled moments later but teenager Svante Ingelsson restored Udinese's advantage 10 minutes into the second half. Giacomo Bonaventura's superb curling shot put the visitors in front but Lorenzo De Silvestri nodded in from a corner.

    American Airlines Group (NASDAQ:AAL) Given "Hold" Rating at Stephens

    The ratio increased, as 74 funds increased and started new equity positions, while 61 sold and decreased stakes in Quad . The active investment managers in our database now own: 1.29 million shares, down from 1.41 million shares in 2017Q3.
    P&G to buy German Merck's consumer health business for $3.4 billion

    P&G to buy German Merck's consumer health business for $3.4 billion

    The acquisition will improve P&G's geographic scale for over-the-counter health care products, it said in a statement Thursday. The German conglomerate had said it wouldn't have the money to bolster the consumer health division as well as test new drugs.
  • Watch A Robot Assemble Its Own IKEA Chair

    Watch A Robot Assemble Its Own IKEA Chair

    Next, using algorithms developed by the team, the robot plans a two-handed motion that is fast and collision-free. But thanks to AI, assembling the retailer's chairs could be a nuisance of the past.
    Thursday forecast: Warmer with much lighter winds

    Thursday forecast: Warmer with much lighter winds

    Look for a lovely Wednesday as temperatures climb quickly into the mid to upper 70s this afternoon under lots of sunshine. Meanwhile on Saturday , the high moving in at the surface won't be in sync with the upper levels of the atmosphere.
    Houston Emergency Operator Gets Time in Prison, Probation for Dropping Calls

    Houston Emergency Operator Gets Time in Prison, Probation for Dropping Calls

    A former 911 operator in Houston was convicted and sentenced Wednesday for hanging up on people calling to report an emergency. Although the call was disconnected, the recording captured Williams saying, "Ain't nobody got time for this".
  • Hudson Valley Air Quality Gets Poor Grades in Latest Data

    Hudson Valley Air Quality Gets Poor Grades in Latest Data

    Still, Seilback said about 134 million Americans live in counties with unhealthy ozone or particle pollution levels. Seilback said overall, this report shows nationally, air quality has gotten better and continues to improve.
    Buhari didn't deride Nigerian youths - Presidency

    Buhari didn't deride Nigerian youths - Presidency

    How can "a lot of them", suddenly transmogrify to mean "all of them?" Ikubese challenged Nigerian youths to vote out those he called, "old brigades", adding as a youth he is not averse to hard work.

    Shuri schools Bruce Banner in new clip from Marvel's Avengers: Infinity War

    In addition to Spider-Man, Marvel is also collaborating with Square Enix on several Avengers related projects. We didn't want Iron Man , Black Widow or Hulk to overshadow these new members of the Avengers .
  • Kylie Jenner & Travis Scott Enjoy a Night Out in Houston

    Kylie Jenner & Travis Scott Enjoy a Night Out in Houston

    Of course, she couldn't resist bringing a little bling, wearing some bracelets, rings, and a watch described as "luxe". Travis Scott and Kylie Jenner took a break from parenting to enjoy a date at a Houston Rockets game on April 18.
    Ocean pollution a focus as Commonwealth Summit opens

    Ocean pollution a focus as Commonwealth Summit opens

    The Commonwealth includes Canada and Australia, as well as smaller countries like Antigua and Sri Lanka. The PM said the issue of plastic waste would be "central" to the UK's agenda at the bi-annual meeting.
    Trump files for tax extension with IRS, White House says

    Trump files for tax extension with IRS, White House says

    The Tax March has connected with a coalition of more than 70 organizations united in fighting the GOP tax bill. Since then, the economy has continued to hum, but approval ratings for the Tax Cuts and Jobs Act have eroded.