Takeda Makes Firm $62.2 Billion Bid for Shire

May 11, 2018: By Jon Swedien

Takeda Pharmaceutical has made a firm $62.2 billion bid to acquire Shire, and the boards of both companies have agreed to the deal, the companies announced May 8.

The bid is roughly 46 percent cash and 54 percent stock.

Shire investors will receive $30.33 in cash and either 0.839 new Takeda shares or 1.678 Takeda American depositary shares for each share.

After the deal has been approved, shareholders from both Takeda and Shire would each own about 50 percent of the combined company, the companies said.

The deal is expected to close in the first half of calendar year 2019, although it does require approval from Shire’s shareholders.

In April, the boards agreed to a preliminary $64 billion preliminary bid.

Shire’s market value is roughly $50 billion, about $10 billion more than Takeda’s estimated value.

Takeda’s shares have dropped 18 percent since late March when news of a possible acquisition went public. Some investors have voiced concern that Takeda might overextend itself with only $4.3 billion in cash on hand for the deal.

To pay off debts quickly, Takeda plans to slash thousands of jobs and cut back on duplicated drug research, Reuters reported.

Takeda on May 8 announced it plans to cut a thousand jobs.

Tokyo-based Takeda describes its therapeutic areas as gastroenterology, oncology and neuroscience, plus vaccines.

Shire, founded in 1986, has a workforce of 23 thousand. The company reported 2017 revenues of $15.16 billion, with its dry eye treatment, Xiidra, generating $259 million. Xiidra has topped 1 million prescriptions since its launch in August 2016.

Shire’s overall sales hit nearly $3.77 million (5 percent, 2 percent, cc) in Q1-2018.

Takeda, founded in 1781, has 30 thousand employees. It forecast global revenues for fiscal 2017 of $15.9 billion.

Both companies maintain a large presence in Massachusetts, and the Boston Business Journal said such a takeover would represent a significant consolidation of the state’s biotech sector.

A successful bid for Shire would mark the biggest-ever Japanese acquisition of a Western firm, the New York Times reported. It would create a global drug giant with sales of around $31 billion a year.

Need Deeper Analysis? Sign up for Market Scope's monthly newsletter to get in-depth coverage of the ophthalmic market, including quarterly procedure volumes based on survey data and meeting coverage from around the world.

Recent Ophthalmic News

US Health Secretary Alex Azar Takes Aim at Rebates in US Senate Hearing

Beyeonics Surgical Raises $11.5 Million in Initial Funding Round

MeiraGTx Raises $75 Million in Initial Public Offering

GenSight to Pursue Approval for LHON Gene Therapy Candidate, Despite Phase III Setback

Optovue Receives FDA Clearance for AngioAnalytics, First OCT Angiography Metrics

Nexy Robotic Retinal Imaging System Receives FDA Clearance

Ocutrx Receives US Patent for Oculenz AR Glasses for Macular Degeneration

Allergan’s Bimatoprost SR Demonstrates Noninferiority to Timolol in Phase III Glaucoma Study

KKR to acquire Envision Healthcare, Including Amsurg ASC Business

Ophthalmologist Carmen Puliafito, MD, Seeks to Regain Medical License

Avedro Gains J Code for Photrexa Formulations in Preliminary CMS Decision

EyeGate Seeks to Study Ocular Bandage Gel in Punctate Epitheliopathy

Nicox, Ironwood to Collaborate on Novel Ophthalmic Treatments

US FDA Approves MDGH’s Moxidectin for Treatment of River Blindness

Bausch + Lomb Enrolls First Patient in Trial for enVista MX60EF Trifocal IOL

Cincinnati Eye Institute Partners with Private Equity Firm to Pursue National Expansion

Ophthotech Enters Gene Therapy Deals with University of Florida, University of Pennsylvania

Teva’s Launches Generic Version of Restasis in Canada

Clearside’s Phase II Trial for DME Candidate Meets Primary Endpoint

Orasis Raises $13 Million in Series B Financing

Coming soon

2018 Glaucoma Device Report: A Global Market Analysis for 2017 to 2023