Shire’s shareholders just don’t want a deal with Baxalta, especially not if it involves cash. Every time the drug maker closes in on another takeover bid for the US rare diseases firm, its share price plunges.
The FTSE 100 company, which slumped 210p to 4,089p yesterday, is said to have held talks with Baxalta over a second bid, having been rebuffed by Baxalta in August, just six weeks after it was spun out of Baxter.
After snapping up US biotech firm Dyax for $5.9bn (£3.9bn) last month, its chief executive Flemming Ornskov insisted Shire had not given up the chase for Baxalta.
On the previous terms, Shire’s all-share bid is worth $31.40 a share after a 30 per cent fall from the stock, making it around $6 cheaper than Baxalta’s share price. Investors expect a renewed bid to involve cash and shares.
The natural resources-heavy FTSE 100 extended its losing streak to eight sessions, closing down 78.72 points at a three-year low of 5,874.06 after another rout for commodity prices, which saw Brent crude oil lose 38 cents to $37.55 a barrel, near 11-year lows.
Miners dominated the biggest fallers, with Glencore the heaviest hit, down 5.37p at 80p, and Anglo American 12.15p lower at 280.8p.
Among the few blue-chip risers was InterContinental Hotels Group (IHG), the owner of Holiday Inn and Crowne Plaza, which picked up 16p to 2,511p after rival Accor snapped up the parent of Raffles and Fairmont in a $2.9bn deal. The City hopes IHG will be the next to be swept up by the wave of takeover activity in the hotels industry.
The FTSE 250, which is far less exposed to global forces, remains 4 per cent higher this year, compared with the FTSE 100’s 10 per cent dive.
On the mid-cap index, RPC rose 18.5p to a record high for the packaging group of 782.5p as it snapped up French bottle-top maker GCS Group from private equity firm PAI Partners for €650m (£473m).
Meanwhile, a profit warning from Tribal and a planned rights issue to raise £35m for the education services group, still without a chief executive, saw it plummet 26.88p to 27.5p.
By Jamie Nimmo
Source: The Independent
A monkeypox outbreak is emerging in the U.S. and Europe, and at least one country is amping up countermeasure preparedness. Bavarian Nordic has secured a contract with an unnamed European country to supply its smallpox vaccine, called Imvanex in Europe, in response to the emergence of monkeypox cases, the Danish company said Thursday.
Moderna’s recent chief financial officer debacle—in which Jorge Gomez departed on his second day on the job—raised questions about the company’s hiring process given its rush to global biopharma prominence. The most obvious one: How was it possible for Gomez to be hired when he was under investigation by his previous employer, Dentsply Sirona of Charlotte, N.C.
Merck & Co. is plucking a cancer project from the branch of Chinese-based Kelun Pharmaceutical for up to $1.4 billion, but details from the New Jersey-based Big Pharma have been hard to come by. The deal, first disclosed Monday on the Shenzhen stock exchange, has Merck handing over $47 million in upfront cash in exchange for ex-China rights to a “macromolecular tumor project.”