Japan/USA: Takeover Flurry in Pharmaceuticals Shire Turns Down 60 Billion Dollar Takeover Bid from Takeda

Editor: Alexander Stark

Shire announced that it has turned down repeated takeover offers from Takeda Pharmaceutical. The latest offer amounted to about $ 60 billion. According to the company, the two sides were in talks about another “more attractive” transaction.

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Shire said it has turned down repeated takeover offers from Takeda Pharmaceutical
Shire said it has turned down repeated takeover offers from Takeda Pharmaceutical
(Source: Bloomberg)

Lexington/USA (Bloomberg) — Takeda said it offered $ 66.16 a share in cash and stock last week for Shire in a bid to extend its global reach. The US company’s board and its advisers found the offers “significantly undervalue the company and Shire’s growth prospects and pipeline.”

Takeda has been ramping up its takeover ambitions under Chief Executive Officer Christophe Weber, as the company seeks growth overseas amid patent expirations and a shrinking domestic population. Shire would bring new assets in gastrointestinal diseases and nervous-system ailments, and key treatments in the late stages of testing.

Shire was responding to a statement earlier Thursday from Takeda, in which the Japanese company said the UK-listed drugmaker had rejected its advances. Under British takeover rules, Takeda had until next week to make an offer or walk away, after it initially expressed interest in Shire last month.

Takeover Frenzy

The latest proposal, made last week, comes amid a flurry of transactions in the pharmaceutical sector, marked by Glaxo Smith Kline’s $ 13 billion agreement last month to buy out Novartis' stake in the two companies’ consumer-health joint venture.

Just this week, Merck agreed to sell its over-the-counter unit to Procter & Gamble for $ 4.2 billion, Sanofi said it would sell its European generic-drug business to buyout firm Advent International and Shire agreed to sell its cancer unit to France’s Servier SAS for $ 2.4 billion.

Takeda’s largest purchase to date was a $ 13.7 billion takeover of Nycomed in 2011. Last year, the company expanded its footprint in the US oncology market with the $ 4.7 billion purchase of Ariad Pharmaceuticals.

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