Sector News

Deal-minded Shire offers $30B for new spinoff Baxalta in public bid

August 4, 2015
Life sciences
It didn’t take long for Baxalta, the biopharma company spun off from parent Baxter Laboratories early last month, to draw takeover interest. As Shire announced on Tuesday, it put forth a bid of about $30 billion for the Illinois pharma on July 10–just 9 days after Baxalta went solo–and now it’s taking the offer to shareholders to spur the company to the bargaining table.
 
The Irish pharma last month offered up $45.23 per Baxalta share–a 36% premium over its target’s Monday stock price, it said.
 
To Shire, the logic of its proposal is clear. A tie-up between the two companies would generate $20 billion in sales by 2020, it figures, with projected double-digit top-line growth. Adding Baxalta’s hemophilia drugs to Shire’s growing rare disease portfolio would also create an industry leader in rare diseases, a quickly expanding field with high barriers to entry, Shire said.
 
“The combined entity would have the opportunity to create significant shareholder value in one of the most attractive and fastest growing segments in healthcare,” CEO Flemming Ornskov said in a statement.
 
Joining hands with Dublin-based Shire would lower Baxalta’s tax rate, too–and on top of that, Shire will structure the pickup as an all-stock transaction so that the Baxalta shareholders can hang onto the spinoff’s tax-free status.
 
Baxalta’s execs, though, haven’t shown the same enthusiasm for a deal, and as Ornskov wrote in a letter to company CEO Ludwig Hantson, their “lack of engagement has been surprising.” Following a July 10 meeting–at which Shire’s leaders outlined their vision–Baxalta said it saw no “basis for discussions,” leaving Shire with “no choice” but to take its offer public.
 
Shire itself may understand what Baxalta is going through after a pursuit from AbbVie ($ABBV) last year. The Dublin drugmaker turned down multiple offers from the Abbott spinoff before finally settling on a $55 billion agreement, only to see that deal fall through months later on new, stricter U.S. rules on tax inversions.
 
Since then, though, it’s been all buys for Ornskov’s company. In January, it inked a pact to buy GI specialist NPS Pharma, and earlier this week it agreed to nab pinkeye drug developer Foresight Biotherapeutics for $300 million.
 
By Carly Helfand
 

comments closed

Related News

October 2, 2022

GSK names Julie Brown, a 25-year AstraZeneca veteran, its first woman CFO

Life sciences

Five years ago, GSK made headlines when it hired Emma Walmsley to become the first woman to run a major pharmaceutical company. Now the Big Pharma has brought in another woman to control the company’s finances. Julie Brown will be GSK’s next chief financial officer. Brown, currently the chief operating and financial officer at fashion and beauty brand Burberry Group, is set to replace Iain Mackay.

October 2, 2022

Moderna creates new launch preparation role, poaches Novartis exec as manufacturing lead

Life sciences

Moderna created a new role responsible for “building out the company’s organization to support its growing pipeline.” Starting first thing 2023, Juan Andres, Moderna’s manufacturing head, will step into this new role under the title president of strategic partnerships and enterprise expansion, the company said Thursday.

October 2, 2022

Torrent Pharma to acquire Curatio for $245.16m

Life sciences

The latest takeover is anticipated to boost the presence of Torrent in the dermatology segment. Indian company Torrent Pharmaceuticals has signed a definitive agreement for the complete acquisition of Curatio Healthcare for $245.16m (Rs20bn).