Takeda to Acquire Shire for $62 Billion in Rare Disease Deal

Osaka, Japan-based company Takeda Pharmaceutical has entered into an agreement to buy rare disease drugmaker Shire for £46 billion ($62 billion). The deal values Shire shares at just over $30 apiece, with current Shire shareholders set to receive 0.839 new Takeda shares or 1.678 Takeda American depositary shares (ADS) upon completion of the transaction.

The companies took months to reach an agreement, with Takeda submitting five offers to Shire in order to secure the deal.

“Since its inception, Takeda has transformed into an agile, R&D-driven global pharmaceutical company that is well-positioned to deliver innovative and transformative care to patients around the world,” said Christophe Weber, president and chief executive officer of Takeda. “Shire’s highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda. Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies. We are looking forward to the benefits this combination will bring to patients worldwide, the opportunities it will bring for our employees and the returns it will deliver for our shareholders.”

According to Takeda, the deal will have myriad benefits, including improved R&D capabilities and more coverage in both key therapeutic areas and geographic locations around the world. The Japanese pharmaceutical company has been on an acquisition streak this year, with the drugmaker acquiring cell therapy company TiGenix for €520 million in January of this year.

“Over the last 30 years, Shire has become the global leader in treating rare diseases, delivering innovative products that transform patients’ lives,” said Susan Kilsby, chairman of Shire. “With this combination, Shire helps create an even stronger biopharmaceutical company, with a robust R&D pipeline and expanded global footprint. We are proud of what Shire has become and are grateful to all Shire employees for their contributions. We firmly believe that this combination recognizes the strong growth potential of our leading products and innovative pipeline and is in the best interests of our shareholders, our patients and the communities we serve.”

Takeda and Shire’s GI and neuroscience divisions are complementary to one another and the buyout will strengthen Takeda’s rare disease pipeline considerably. Shire currently has 15 drug candidates in the pipeline and has already secured a 2018 European approval for a biologic drug indicated for the treatment of the rare disease hemophilia A.

“I would like to thank the entire Shire team for all that we have accomplished over the last five years to transform Shire into a leading rare disease biotech company and a tenacious champion for patients in need,” said Flemming Ornskov, chief executive officer of Shire. “I am confident that this relentless focus will enable us to continue delivering against our priorities throughout this process. With a truly innovative portfolio and pipeline, I believe that the combination of the two companies is in the best interests of shareholders and offers an opportunity to improve the lives of even more patients globally with rare and highly specialized conditions.”

The acquisition is expected to be completed in the first half of 2019. For now, it’s unclear whether Takeda will adopt Shire’s open access policy for published research studies, which the company implemented earlier this year.