Baxalta Refuses Shire's $30B Proposal

Aug 04, 2015

Shire plc announced it made a proposal to Baxalta Inc. on July 10, 2015, to combine the companies in an all-stock transaction whereby Baxalta shareholders would receive $45.23 per Baxalta share, which represents a significant premium of 36 percent over Baxalta’s stock price as of August 3, 2015, according to a Shire press release. Baxalta has declined to engage in discussions regarding the proposal.

Together, Baxalta and Shire are projected to deliver product sales of $20 billion in 2020, advancing the combined pipeline and bringing innovative new therapies to market for patients with rare, often lifethreatening, diseases and conditions, the release said.

Flemming Ornskov, CEO of Shire said: “We believe the proposed combination of Shire and Baxalta would be strategically and financially attractive for both of our companies, accelerating our respective growth ambitions and creating the leading global biotech company in rare diseases. The combined entity would have the opportunity to create significant shareholder value in one of the most attractive and fastest growing segments in healthcare. Together, the companies would be projected to deliver $20 billion in product sales by 2020, with the financial and operational firepower to fuel further innovation and growth in rare diseases. It is our strong preference to immediately enter into a negotiated transaction to explore the full potential of the proposed combination and finalize the terms of an agreement.”

Read the full release

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