Takeda Agrees to Acquire Shire for $62.4 Billion

Rare Daily Staff

Takeda Pharmaceutical and Shire said that they have reached agreement on the terms for Takeda to acquire the rare disease drugmaker for $62.4 billion in cash and stock.

The acquisition will strengthen the global reach of Takeda with an expanded presence in the United States and enhance its R&D capabilities. The integrated company will continue to be headquartered in Japan, with an expanded R&D presence in the Boston area and major regional locations in Japan, Singapore, Switzerland, and the United States.

For Takeda, the transaction strengthens its portfolio in GI and neuroscience, and provides a leading position in rare diseases and plasma-derived therapies to complement the company’s existing position in oncology and focused efforts in vaccines.

“Shire’s highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda,” said Christophe Weber, president and chief executive officer of Takeda. “Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies.”

Under the terms of the acquisition, each Shire shareholder will be entitled to receive $30.33 in cash for each Shire share and either 0.839 new Takeda shares or 1.678 Takeda ADSs. The boards of both companies have approved the transaction, which is expected to close in the first half of calendar year 2019.

Upon the closing of the transaction, Takeda shareholders will own approximately 50 percent of the combined group.

Takeda has entered into a bridge facility agreement of $30.9 billion with J.P. Morgan Chase Bank, Sumitomo Mitsui Banking Corporation and MUFG Bank among others to be used in part to fund the cash outlay to Shire shareholders.

May 8, 2018
Photo: Christophe Weber, president and chief executive officer of Takeda