Big Pharma Acquisition: Takeda to acquire Shire for $62 billion

Takeda Pharmaceutical Co. of Japan has finalized an agreement to buy Shire PLC, the second-biggest biotech employer in Massachusetts, for $62 billion in the largest-ever international takeover by a Japanese company.

About Shire:

Shire is a strong biopharmaceutical company, with a robust R&D pipeline and expanded global footprint. One of the leading brand of Shire is Adderall, a treatment for ADHD, but has become one of the world’s biggest makers of medicines for rare diseases.

Why Takeda acquired Shire?

• By acquiring Shire will raise from three to 10 the number of late-stage clinical drugs that Takeda has in its pipeline. Having Shire also will increase Takeda’s focus on gene-oriented treatments rather than traditional chemical compounds.
• The takeover would give Takeda a foothold in the market for rare-disease drugs. The US government gives drug makers financial incentives to develop medicines for rare disorders.
• Shire’s acquisition would catapult Takeda, which has few late-stage experimental drugs in its own pipeline, into the ranks of the world’s biggest pharmaceutical companies. Takeda was already Asia’s largest drug maker.
• The combined firm would expected to be the eighth-biggest drug maker in the world.
• Shire has faced internal pressure. The company resulted into debt from its $32 billion acquisition of Baxalta in 2016, a widely criticized deal, while generic drug makers have stepped up competition. Last month it announced the sale of its oncology business to French drug maker Servier for $2.4 billion.

About Takeda:

Takeda is a patient-focused, innovation-driven global pharmaceutical company that builds on a distinguished 236-year history, aspiring to bring better health and a brighter future for people worldwide.

Market Presence in over 70 Countries and Regions

The network of Takeda spans over 70 countries and regions worldwide, in Japan, the United States, Europe, Latin America, Africa, the Middle East, and the Asia Pacific Region. Takeda’s pharmaceutical products are marketed in around 100 countries worldwide, including partnerships (marketing alliance partners).

Takeda’s Consolidated Revenue by region (FY 2016)

• Japan: 655.3 billion yen
• United States: 520.2 billion yen
• Europe and Canada: 279.7 billion yen
• Russia/CIS: 57.5 billion yen
• Latin America: 72.5 billion yen
• Asia: 112.8 billion yen
• Others: 34.0 billion yen
  (As of March 31, 2017)