Takeda and Shire come to terms on proposed $62-billion acquisition

Takeda Pharmaceutical Company and Shire have come to terms for a proposed acquisition of Shire by Takeda for approximately $62 billion. Takeda first disclosed an acquisition proposal for Shire in late March 2018, which was rejected by Shire, and subsequently made several revised proposals. This latest proposal, announced on 8th May, has been approved by both companies’ boards of directors, and is expected to close in the first half of 2019.

Takeda says the acquisition of Shire would provide complementary positions in gastroenterology and neuroscience and provide it with positions in rare diseases and plasma-derived therapies to complement its existing position in oncology. The company will continue to be headquartered in Japan, expand its R&D presence in the Boston area, and have major regional locations in Japan, Singapore, Switzerland and the US.

“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, in a May 8, 2017 company statement. “Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases and plasma-derived therapies,” he said.

Takeda expects recurring pre-tax cost synergies for the combined group to reach a run-rate of at least $1.4 billion per annum by the end of the third fiscal year following completion of the acquisition. Takeda says the acquisition will accelerate Takeda’s transformation toward Vision 2025, its strategic roadmap for the company’s goals, and that combined cash flows will enable continued investment in R&D.