Rare Daily Staff
Shire said it had sold its oncology business to Servier for $2.4 billion.
The sale comes as Takeda has acknowledged that it is considering making a bid to acquire Shire. It follows a process of potential divestment of the oncology business initiated by the shire board in December 2017 that identified multiple potential strategic buyers across the United States, Europe, and Japan.
For Shire, the deal allows the company to focus on its core business of rare diseases and said the transaction “unlocks” value in the portfolio. For France-based Servier, the deal provides a direct commercial presence in the United States and advances it towards its goals of becoming a key global player in oncology.
In 2017, Shire’s oncology business generated revenues of $262 million. It includes in-market products Oncaspar, a component of multi-agent treatment for acute lymphoblastic leukemia and ex-U.S. rights to Onivyde, a component of multi-agent treatment for metastatic pancreatic cancer post gemcitabine-based therapy. The portfolio also includes Calaspargase Pegol, which is under U.S. Food and Drug Administration for the treatment of acute lymphoblastic leukemia and early-stage immuno-oncology pipeline collaborations.
“This transaction is a key milestone for Shire, demonstrating the clear value embedded in our portfolio. While the Oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire’s longer-term strategy,” Flemming Ornskov, CEO of Shire. “We will continue to evaluate our portfolio for opportunities to unlock further value and sharpen our focus on rare disease leadership with selective disposals of non-strategic assets.”
Under United Kingdom regulations, Shire shareholder approval is not required for the transaction. It has been approved by the company’s board of directors and is expected to close in the second or third quarter of 2018.
April 16, 2018
Photo: Flemming Ornskov, CEO of Shire