Shire Buys Baxalta for $32B

Jan. 12, 2016

Shire plc and Baxalta Inc. have reached an agreement under which Shire will combine with Baxalta. Under the agreement, Baxalta shareholders will receive $18.00 in cash and 0.1482 Shire ADS per Baxalta share. Based on Shire’s closing ADS price on Jan. 8, 2016, this implies a total current value of $45.57 per Baxalta share, representing an aggregate consideration of about $32 billion. The parties expect the transaction to close mid-2016.

“This proposed combination allows us to realize our vision of building the leading biotechnology company focused on rare diseases," said Shire CEO Flemming Ornskov, M.D., M.P.H. "Together we will have leadership positions in multiple, high-value franchises and become the clear partner of choice in rare diseases. Our expanded portfolio and presence in more than 100 countries will drive our growth to over $20 billion in anticipated annual revenues by 2020. Our due diligence has reinforced our belief in the combination, and we look forward to welcoming Baxalta colleagues to a shared entrepreneurial, patient-driven culture.”

Wayne T. Hockmeyer, Ph.D., Chairman of Baxalta, said: “We launched Baxalta to focus on purpose-driven performance, sustainable growth, and continuing our leadership in developing treatments for orphan and underserved diseases. While we have made great progress to date and have had a measurable impact across all our businesses, I look forward to joining the board of the combined company to help ensure that we infuse the best of both organizations and foster a new shared culture that has the resources, the passion, and the commitment to continue to make a meaningful difference in the lives of our patients and their families.”

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