After several failed attempts, Japanese drugmaker Takeda Pharmaceutical managed to reach an agreement to acquire Shire in a $62 billion deal. The offer is approximately 46 percent cash and 54 percent stock, leaving Shire shareholders owning around half of the combined group. Shire investors will receive $30.33 in cash and either 0.839 new Takeda shares or 1.678 Takeda American depositary shares for each share, the companies said.
The deal, which marks the biggest acquisition of a drug company this year, has been approved by both boards, and is expected to close in the first half of 2019. The acquisition also marks the largest takeover ever carried out by a Japanese company.
The deal boosts Takeda’s position in gastrointestinal disorders, neuroscience, and rare diseases. It also provides Takeda a presence in ophthalmology. Shire received FDA approval for Xiidra (lifitegrast) in 2016, and has additional ophthalmic product candidates in its pipeline in conjunctivitis, dry eye, and glaucoma.
“Shire’s highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda,” Christophe Weber, Takeda CEO, said in a company news release. “Together, we will be a leader in providing targeted treatments in gastroenterology, neuroscience, oncology, rare diseases, and plasma-derived therapies.”
Takeda had previously submitted four proposals to acquire Shire, having first disclosed in March that it was considering making an offer to buy the drugmaker.
“We firmly believe that this combination recognizes the strong growth potential of our leading products and innovative pipeline and is in the best interests of our shareholders,” Shire chairman Susan Kilsby said in the news release.
According to the companies, upon the closing of the transaction, Takeda shareholders will own approximately 50 percent of the combined group, which will have its headquarters in Japan. The Japanese company predicts annual cost synergies of at least $1.4 billion 3 years after completion and the deal is expected to boost underlying earnings significantly from the first full year after closing.
The group’s combined 52,000 workforce will likely to be reduced by 6-7 percent. The companies have a number of commercial, research and manufacturing overlaps, particularly in the United States.
Takeda said it would maintain its global headquarters in Japan and evaluate consolidating Shire’s operations into Takeda’s in the Boston area, Switzerland and Singapore.