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Shire in US$30bn takeover battle
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M&AIrelandUK

Shire in US$30bn takeover battle

05.08.2015 - Irish pharma and biotech major Shire wants to be number one in orphan diseases, and is setting out to acquire US-American Baxalta in a US$30bn deal – by any means necessary.

Shire has big goals: to be “the leading global biotech company focused on rare diseases”. And to succeed, the Irish company is prepared to engage in a hostile takeover. After getting nowhere with the board of its target company Baxalta, it has turned directly to the US company’s shareholders. Shire’s offer: a merger based on an all-stock transaction which would net Baxalta shareholder 0.1687 Shire ADRs, worth US$45,25, for each of their Baxalta shares. This represents a premium of 36% over Baxalta’s stock price on 3 August. Baxalta shareholders would end up owning 37% of the combined company.

Shire is not letting grass grow under its feet: their first proposal to Baxalta only happened on 10 July and met with a less than lukewarm reception. The US company’s “lack of engagement has been surprising,” Shire CEO Flemming Ornskov writes in a letter to Baxalta CEO Ludwig Hantson. He believes the reasons for the merger to be compelling. The combined company would be a leader in rare diseases and have multiple billion-dollar franchises in high-value therapeutic areas. Product revenues could reach up to US$20bn by 2020, with the financial and operational resources to invest in further innovation and growth in orphan diseases. Ornskov felt Shire had no other choice but to contact the shareholders directly.

“We believe the proposed combination of Shire and Baxalta would be strategically and financially attractive for both of our companies, accelerating our respective growth ambitions and creating the leading global biotech company in rare diseases,” Ornskov said in a statement, and concluded: “It is our strong preference to immediately enter into a negotiated transaction to explore the full potential of the proposed combination and finalise the terms of an agreement.”

Baxalta disagrees. The company has published a statement saying the proposal was not in the best interest of the Deerfield-based company. “The Board today reaffirmed its conclusion that Shire’s proposal significantly undervalues Baxalta and its attractive prospects for growth and value creation, and that a merger at this time would be severely disruptive at this very early stage of Baxalta’s existence as a public company and presents a significant and real risk to value creation for our shareholders,” said Wayne Hockmeyer, Chairman of the Board of Baxalta. It seems unlikely that Shire will take no for an answer this time around.


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http://www.european-biotechnology-news.com/news/news/2015-03/shire-in-hostile-takeover-bid-for-baxalta.html

R&DUKSweden

04.08.2015 In a deal worth US$65m upfront, AstraZeneca is again teaming up with long-time partner Isis Pharmaceuticals Inc., this time to discover and develop RNA antisense drugs for cardiovascular, metabolic and renal diseases.

BusinessBelgiumSpain

31.07.2015 Spanish business developer Genetrix has sold its clinical stage cell therapy development subsidiary Coretherapix to Belgian TiGenix in a deal worth up to €267m.

BusinessUKSwitzerland

29.07.2015 Newly founded Mereo BioPharma has acquired three mid-stage clinical assets from Novartis. In turn, the Swiss pharma concern will hold a stake in the UK company. Other investors are also on board.

M&AIreland

28.07.2015 Irish Allergan is bolstering its product pipeline with a takeover of CNS specialist Naurex. At the same time, the company is divesting its global generics business to Teva.

Public marketGermanyFranceBelgiumFinlandDenmarkUK

24.07.2015 Biotech companies across Europe continue to raise cash on the public markets, generating €3bn in total financing proceedings in the first half of 2015. Compared to 2014, this is almost twice as much.

FinanceFrance

23.07.2015 US money keeps flowing into Europe's biotechs. As the race for the peanut allergy market heats up, NASDAQ listed French biotech DBV has announced the successful closing of US$281m (€256m) share offering for its allergy products.

BioplasticsFrance

21.07.2015 French biotech Deinove has launched a R&D programme to produce the versatile chemical intermediate muconic acid by using a designer variant of the Deinococcus bacteria.

BusinessFrance

16.07.2015 Sanofi has announced plans to restructure its business in five standalone global business units starting in January 2016. The goal is to promote growth and help the company launch a catalogue of new drugs over the next five years.

R&DUK

15.07.2015 GlaxoSmithKline (GSK) has become the first drugmaker to join the Francis Crick Institute. It is a consortium made up of six scientific and academic institutes to conduct research and drug development in the UK. The new institute is set to become a world-leading centre of biomedical research and innovation.

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http://www.european-biotechnology-news.com/news/news/pos/3.html

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No liability assumed, Date: 04.08.2015