Takeda Pharmaceutical Acquires Shire Plc for US$ 62 Billion
Takeda Pharmaceutical Company Ltd. in its largest deal ever, announced the acquisition of Shire Plc. at around US$ 62 (£46 billion) on May 8, 2018. Shire’s complementary product portfolio and pipeline in gastroenterology and neuroscience, two of the core business segments of Takeda, may have been the primary focus for this acquisition, as highlighted in Takeda CEO’s, Christophe Weber, statement post the announcement of the acquisition. This acquisition will not only make the combined entity (Takeda + Shire) one of the leading players in gastroenterology and neuroscience markets, but also one of the top 10 pharmaceutical companies on the basis of revenue in 2017. Moreover, Shire has multiple products in pipeline for rare diseases, which will help Takeda to establish itself as a strong contender in this (i.e. rare disease drugs) growing market. The acquisition will also make the combined entity resilient and prepared for a tough environment, especially in the U.S., as stated by Takeda CEO in one of the recent interview. The combined entity is expected to gain about 50% of its revenue from the U.S. The U.S. is witnessing conflicts regarding prices of pharmaceutical drugs and innovative tactics of delaying entry of generics in the market.
Click the link below for complete Analysis of the Acquisition,
The company is expecting the acquisitions to go according to its plans, however, the value of the deal, which is about 4 times the revenue of Takeda and 2x its market value has made the investor worrisome about the future of Takeda. This is reflected in continuous decline of the Takeda share price since March, when rumors about this acquisition came out in public. However, for now the company (i.e. Takeda) has managed to get receive fund by entering into ‘364-Day Bridge Credit Agreement” with the initial lenders including JP Morgan Chase Bank, N.A., Sumitomo Mitsui Banking Corporation, and MUFG Bank, Ltd. for US$ 30.85 Bn, which is expected to significantly aid the company in the acquisition.
You may be interested
Smart Nanotechnology Enlivens Wooden Ships and ArtifactsMohit Joshi - January 28, 2019
Scientists developed an innovative approach using ‘smart’ nanocomposites to conserve 16th-century British warship, the Mary Rose, and its artifacts. Shipwrecks are preserved in sediments under cold water,…
Researchers Discovered New Properties of Ferroelectric CrystalMohit Joshi - January 25, 2019
Researchers discovered new properties of ferroelectric crystal, according to a study published on July 10, 2018. This study was conducted by a team of researchers from China.…
Researchers Develop Novel Antibody to Knockdown of Protein in VertebratesMohit Joshi - January 24, 2019
Researchers from Technische Universität Dresden developed a synthetic antibody that improves functional analysis of proteins. A research led by Dr. Jörg Mansfeld of the Biotechnology Center of…