Sector News

Reuters: Shire closer to deal to buy Baxalta

December 24, 2015
Life sciences

(Reuters) – Drug maker Shire Plc (SHP.L) has made a new acquisition offer for peer Baxalta International Inc (BXLT.N) that is roughly in line with the latter’s valuation expectations, making a deal in the coming weeks likely, people familiar with the matter said.

An agreement would successfully end Dublin-based Shire’s five-month pursuit of Bannockburn, Illinois-based Baxalta and create one of the world’s leading specialists in rare diseases.

Baxalta’s board rejected an all-stock offer from Shire in August, saying it had significantly undervalued the company.

While the exact terms of the deal could not be learned, Shire has now added enough cash to its previous all-stock offer for talks to advance, the people said. Baxalta would be valued in excess of $30 billion in any deal, one of the people added.

Baxalta shares were up 4.4 percent at $39.74 in afternoon trading in New York. American depository shares of Shire were trading down 0.4 percent at $194.40.

The sources asked not to be identified because the negotiations are confidential. Baxalta and Shire spokespeople offered no comment.

The challenging deal talks with Baxalta came after Shire pursued other deals in the rare diseases sector. Shire announced on Nov. 2 it was buying Dyax, which manufactures treatments for a rare genetic disease, for $5.9 billion.

A combination of Shire and Baxalta would add to the more than $600 billion in healthcare merger deals this year, which has been the busiest in the history of healthcare deal making.

Baxalta develops biotech treatments for rare blood conditions, cancers and immune system disorders. It was spun off was spun off from Baxter International Inc (BAX.N) in July.

By Carl O’Donnell and Pamela Barbaglia

comments closed

Related News

January 22, 2023

Sun Pharma to buy Concert Pharmaceuticals for $576m

Life sciences

Sun Pharmaceutical Industries has signed a definitive agreement to buy all outstanding shares of Concert Pharmaceuticals in a deal valued at $576m. Under the deal, the company will buy all shares of Concert common stock through a tender offer for $8.00 per share in cash upfront payment.

January 22, 2023

Novo Nordisk diabetes pill wins FDA approval for first-line use

Life sciences

The Food and Drug Administration on Thursday approved Novo Nordisk’s diabetes pill Rybelsus as an initial treatment to lower blood sugar levels, a label expansion that will allow it to compete more directly with other oral drugs from Merck & Co. and Eli Lilly.

January 22, 2023

Bayer feeling more heat from activist investors, this time from Bluebell

Life sciences

Since making an ill-advised $63 billion buy of Monsanto in 2018, Bayer has faced heaps of pressure from investors that have called for the company to oust its leadership and to restructure. Now comes new pressure from a familiar source. Bluebell Capital Partners has bought an undisclosed stake in the company and is agitating for a breakup, sources told Reuters.

How can we help you?

We're easy to reach