Shire Announces Sale of Oncology Business to Servier for $2.4 Billion

Shire Plc agreed to sell its cancer unit to France's Servier SAS for $2.4 billion, tightening the USA -based drugmaker's focus on rare diseases and potentially making it more attractive to Takeda Pharmaceutical Co. as it considers a bid. Buying Shire would be transformational for Takeda but would be a huge financial stretch, since the company is now worth around $10 billion more than the Japanese group.

The deal works for Servier, which has been trying to build its presence in the oncology market for the last few years, by giving an immediate presence in the US. Its oncology business had sales of $262 million previous year, putting the divestment on a respectable revenue multiple of 9.2 times.

The portfolio also includes Calaspargase Pegol (Cal-PEG), which is under USA review for the treatment of ALL and early stage immuno-oncology pipeline collaborations, the firm noted. "We will continue to evaluate our portfolio for opportunities to unlock further value and sharpen our focus on rare disease leadership with selective disposals of non-strategic assets", said Chief Executive Officer Flemming Ornskov.

Shire's oncology business includes in-market products Oncaspar (pegaspargase), a component of multi-agent treatment for acute lymphoblastic leukemia (ALL), and ex-US rights to Onivyde (irinotecan pegylated liposomal formulation), which is part of a treatment regimen for metastatic pancreatic cancer post gemcitabine-based therapy. Under UK takeover rules, Takeda has until April 25th to announce whether or not it will bid for Shire, which has a market value of around $47 billion.

Proceeds from the sale is expected to go towards increasing optionality and Shire will consider returning the proceeds to shareholders through a share buyback.

Olivier Laureau, the group president of Servier, said the deal will enable the company to become a key global player in oncology.

For privately held Servier, acquiring Shire's oncology operation allows it to establish a direct commercial presence in the United States and boosts its presence in cancer.

Shire's London-listed shares were up as much as 1.8pc at the start of trading.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

'The Walking Dead' Fans Are Worried Maggie Is A Villain
The Season 8 finale ends with a clandestine meeting on the Hilltop, with Maggie, Daryl and Jesus plotting to stand against Rick. This is a good thing for Morgan, as his story in " The Walking Dead " doesn't seem to be over just yet, despite the move.

Alliancebernstein LP Acquires 588110 Shares of Genworth Financial (NYSE:GNW)
Caisse De Depot Et Placement Du Quebec holds 1.6% in Microsoft Corporation (NASDAQ:MSFT) or 8.12 million shares. (NYSE:GNW). Taconic Capital Advisors Lp bought 900,000 shares as the company's stock declined 12.19% with the market. (NYSE:GNW).

Black boy 'shot at while asking for directions' in Detroit
However, when sheriffs arrived on the scene they found Brennan Walker down the street and quickly realised a shot had been fired. When I heard her say that, it was like, but it is [what it looks like]". "It definitely was a hate crime", she said.

Rafael Nadal Jokes Roger Federer Is Avoiding Him On Clay
In doing so, Nadal joked that Federer was "maybe a little contradictory" especially after hinting at playing on clay this year. Former world number one Novak Djokovic will link up with former coach Marian Vajda for the Monte Carlo Masters .

Sony Xperia XZ2 Premium debuts with super high ISO sensitivity
Sony is using large sized dual sensors and dedicated AUBE fusion image signal processor for faster processing of low-light images. Instead, the Japanese firm has split image capture between one 19-megapixel colour sensor and a 12-megapixel monochrome.

Boris Johnson defends Syria strikes but says they won't end "horrible" war
The air strikes, carried out by the US, UK and French military, targeted three separate targets in Syria linked to the Assad regime's chemical weapons program.

Chemical attack could happen in U.S. 'if we're not smart': Nikki Haley
It said three civilians were wounded in the Homs attacks but did not give a toll for Damascus or mention any combatant casualties. The president also called out Russian Federation and Iran, the two main backers of Syrian strongman Bashar al-Assad.

Tom Rogic nets as Celtic thrash Rangers in Scottish Cup semi-final
He had "no idea" if the occasion got to the Rangers players. "The players need to respond - not just against Celtic. Celtic were commanding against passive opponents, with Tom Rogic and Callum McGregor scoring before half-time.

Funerary services list, Monday, April 16, 2018
Connie was born on May 5, 1945 in Ottumwa, Iowa as the sixth of seven children to Elna (Lucas) and David Papich of Lovilia. Contributions may be made to Community Hospice of NE Florida, 4266 Sunbeam Road, Jacksonville, FL 32257.

Many travel to honour Mama Winnie's legacy
Public submissions have now also been called for. "We see you in your suits, sell-outs". "Winnie Mandela is our mother". Mbalula told the Sunday Times that a reconnecting of the two parties was "Mama Winnie's last wish - and it is right".

BJP leaders reiterate demand for CBI probe into Kathua case
The two ministers were accused of attending a rally in support of the culprits in the Kathua rape case. It will submit a report to BCI, which will be given to the apex court .

Glitch takes Woolworths checkouts offline around the country
UPDATE 5.10PM: WOOLWORTHS have responded to customer complaints confirming the national outage this afternoon. Shopper Sharni was among those asked to leave her groceries behind at the Hampton Park store in Melbourne.

One more teenager girl raped in the hometown of PM Modi
Civil Hospital Forensic Head Ganesh Govekar said, "The girl's body had 86 injury marks including ones on her private parts". However, the police said that they are still investigating the case and trying to ascertain the identity of the deceased.

Mark Hughes slams Marcus Alonso for attempting to break Shane Long's leg
The FA could then charge Alonso with violent conduct, which would result in a three-game ban. Incident: Shane Long is challenged by Marcos Alonso, who studs him in the back of the leg.

Major fire guts Rohingya refugee camp in Delhi, all IDs charred
An NGO had set up the Rohingya camp in Delhi's Kalindi Kunj locality in 2012 on a 150-odd sqm plot it owns. Syed Hussain, 35, said they had just enough time to wake up their children and family members.


More News

News
More News