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Japanese Drugmaker Takeda mulling Acquiring Shire with its $64Bn Bid

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Published on : Apr 25, 2018

Global drugmakers world over are focusing on large-scale acquisitions in a bid to bolster their pipelines and acquire new, promising assets. Recent pursuits for the bids have been dotted by several negotiations and instances of due diligence exercised by the acquiring pharmaceutical companies. This has also led to extending the deadline for finalizing the deals. A Jersey-registered, Dublin-based biopharmaceutical company, Shire Plc. announced on April 24, 2018 that it was considering its position for entering into a preliminary agreement to be acquired by a Japanese drugmaker Takeda Pharmaceutical Co. The deal seemed favorable to go through only after the Japanese company agreed to firm its offer for the bid to a promising 46 billion pounds ($64 billion).

Acquisition Deal to Fuel Ambition of Takeda to become One of Leading Drugmakers

Takeda with an aim to rise to top echelons in the global pharmaceutical industry has been making bids for acquiring Shire since March 28 and has so far made five offers. The Japanese drugmaker has been notably focusing on late-stage experimental drugs in its own pipeline. Shire stated that it was ready to extend the deadline to May 8, 2018 for the acquisition talks to materialize. If needed, the deadline could be extended to even further. Irish-headquartered specialty biopharmaceutical player is, however, treading cautiously. Speculations are rife that the deal may also fall through if several other issues pertaining to the deal aren’t resolved.

Takeda-Shire Transaction one of Largest Takeovers if Deal Goes Through

Following the near completion of the deal, Shire has been gaining shares with its most recent valuation pegged at around 37 billion pounds (US$52 billion). It only agreed to recommend the deal to shareholders only after the Japanese players improved the cash component.

Post the acquisition, Takeda will be able to consolidate its position by adding portfolio with neuroscience and treatments for rare diseases and gastrointestinal disorders. With Takeda-Shire transaction being considered largest takeover so far, according to experts, the Japanese group must resort to huge cost cutting to pay for the deal. Through the exact terms of the deal are still to be revealed, market analysts learn that post the deal, the shareholders of Shire could own half of the combined entity.

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