DUBLIN: Irland’s pharmaceutical group Shire has announced to buy US peer Baxalta for $32 billion.
The Dublin-based pharmaceutical group’s purchase of the American company will jointly make a global biotech giant targeting rare diseases.
The agreed cash-and-share offer, worth the equivalent of 29 billion euros, was an improvement on a previous hostile bid of $30 billion that Baxalta rejected in August.
The purchase of the Deerfield, Illinois-based group will boost Shire’s position in the market for rare-disease treatments in the pharmaceutical sector, which is undergoing a period of rapid consolidation.
“This proposed combination allows us to realise our vision of building the leading biotechnology company focused on rare diseases,” Shire chief executive Flemming Ornskov said in a statement.
“Our expanded portfolio and presence in more than 100 countries will drive our growth to over $20 billion in anticipated annual revenues by 2020,” he added.
Faced with expiring patents and growing competition from generics, pharmaceutical firms like Shire increasingly view so-called orphan drugs — which target rare diseases — as a key pathway to growth.
Monday’s blockbuster Baxalta deal comes after Shire snapped up Dyax, a US company that also specialises in rare diseases, for $5.9 billion in November.
The latest deal meanwhile “presents a unique opportunity for Baxalta shareholders, who will receive substantial immediate value as well as an ongoing stake in a combined global leader in rare diseases with strong growth prospects”, said Baxalta chief executive Ludwig Hantson.
“We bring to Shire a strong portfolio and pipeline of market-leading products, high-quality manufacturing capabilities and a talented global workforce that places patients at the center of everything we do.”
The combined Shire-Baxalta group will have a major focus on areas like bleeding disorder hemophilia and immunoglobulin therapy, as well as a growing franchise in oncology.
There are some 7,000 orphan diseases affecting an estimated 25-30 million people around the world, most caused by genetic factors. Experts estimate about 450 orphan treatments are under development.
Earlier transactions driven by orphan remedies included Roche’s 2009 acquisition of US company Genentech and the 2014 takeover of Seragon Pharmaceuticals. Pharma giants like Pfizer and Glaxo¬Smith¬Kline have also moved to fortify their rare disease portfolios.
