Takeda Submits Improved Offer to Acquire Shire; Allergan Will Not Make a Bid

Source: Eyewire News

Takeda Pharmaceuticals on Friday announced an improved offer to acquire Shire for about $65.90 (47 pounds) per share, increasing the cash portion of the proposal to around 45 percent, which would sweeten the value of the acquisition to more than $60 billion.

The Japanese drugmaker said the revised bid, which is comprised of $29.45 (21 pounds) in cash and $36.46 (26 pounds) in stock, represents “a highly compelling opportunity” for Shire shareholders.

The new offer comes the day after Shire rejected Takeda’s third takeover bid valued at $65.18 per share, with 38 percent to be paid in cash. Shire, the maker of dry eye drug Xiidra, rebuffed the offer, as well as two previous proposals, determining that it significantly undervalues its growth prospects.

Meanwhile, Allergan, the maker of Restasis, a direct competitor of Shire’s Xiidra, has confirmed that it does not intend to make an offer for Shire at this time.

The confirmation, which was made via a company statement, came hours after reports from Reuters stated that Allergan is in “competing negotiations” with Shire after Shire rejected Takeda’s $60 billion takeover offer.

In March, Takeda originially disclosed that it was weighing a bid for Shire.

“Takeda believes that a potential transaction with Shire presents an opportunity to advance Takeda’s stated Vision 2025, build on its current strong momentum, and create a truly global, value-based Japanese biopharmaceutical leader,” Takeda said in a statement.

Shire received FDA approval for Xiidra in 2016, and has additional ophthalmic product candidates in its pipeline in conjunctivitis, dry eye, and glaucoma.

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