Takeda Pharmaceutical Co. Ltd.’s proposed acquisition of Shire plc is an acceleration of -- not a departure from -- CEO Christophe Weber’s stated strategy to build a top-tier global pharma, according to management.
On May 8, after two months and several rejected bids, Shire accepted Takeda’s proposed takeout offer of £46 billion ($62 billion). The consideration is a 46/54 split between cash and stock, comprised of $30.33 in cash per Shire share and either 0.839 new Takeda shares or 1.678 Takeda ADSs. Takeda closed at ¥4,638 ($42.67) in Tokyo on May 8 before the final deal terms were announced. Takeda shareholders will own about 50% of the combined company.
“The idea with Shire is not to change course, but to accelerate what we’ve already started. It gives us the financial capability and commercial infrastructure to implement the strategy that we’ve built,” Chief Medical and Scientific Officer Andrew Plump told BioCentury.
The proposed acquisition would nearly double Takeda’s revenues and would move the pharma’s commercial center of gravity toward the U.S. On this metric, the deal would satisfy a major pillar of Weber’s strategy -- and his mandate from the board when he joined in 2014 -- to build a global pharma company.
Shire reported 2017 total revenues of $15.2 billion and Takeda posted $15.5 billion in revenues for the fiscal year ended March 31, 2017.
For calendar year 2017, the