Takeda Pharma to Buy Rare Disease Drugmaker Shire for $62 Billion

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The drug maker will be paying almost 49 pounds in cash and stock for each share of the Ireland based company, Shire, as per the closing shire price of Takeda on 23 April (the day before the preliminary deal was announced). Shareholders in the United Kingdom group will hold about 50 percent in the enlarged drugmaker following completion of the deal, which is slated for the first half of next year.

The CEO of Takeda, Christophe Weber cites that jointly with the Shire, a stronger Takeda will emerge. The deal represents a 59.6 per cent premium to Shire's closing price before Takeda's interest emerged.

Takeda will fund the cash portion of the proposed acquisition, through a $31-billion bridge loan facility secured from JPMorgan Chase Bank, Sumitomo Mitsui Banking Corp and MUFG Bank, among others.

Takeda's takeover of Shire is the largest acquisition in the company's history, widely surpassing a near $14 billion acquisition of Nycomed in 2011.

The Japanese drug maker increased its bid for Shire multiple times over the past month.


If it materialises, the deal would give Takeda greater access to the USA and European healthcare markets.

The transaction gives Takeda, a maker of cancer and gastroenterology drugs, greater access to the United States market, while Shire will get greater exposure in Japan and emerging markets.

"We can now go after targets and diseases that we couldn't previously", said Plump, who oversees Takeda's research and development operations, which are based in MA.

And the acquisition would catapult Takeda, which has few late-stage experimental drugs in its own pipeline, into the ranks of the world's biggest pharmaceutical companies.

Takeda expects the merged firms will achieve cost-savings of at least US$1.4bn/y.


Tokyo-listed Takeda's shares, however, climbed nearly four per cent to ¥4,638 (£31.50).

Shire focuses its research on discovering therapies for rare diseases, although the Irish company is well-known for its attention deficit hyperactivity disorder drug Adderall. Last year, it purchased Ariad Pharmaceuticals, allowing them to further develop their oncology unit.

Takeda said the integrated company will be headquartered in Japan, listed in both Tokyo and NY, will expand its R&D presence in the Boston, US, area, and have major regional locations in Japan, Singapore, Switzerland and the US.

Takeda has been conducting due diligence for the past two weeks, but Shire had rejected its offer four times on price disagreement and also because it wanted more in cash and less in stock.


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