After a series of offers, Takeda (TYO:4502) said today that it reached an agreement with Shire (NSDQ:SHPG) to acquire the U.S.-based company in a deal valued at $62 billion.
The merger was approved by both companies’ boards of directors, according to Takeda, and is slated to close in the first half of 2019. Takeda investors are wary of the enormous pricetag – shares are down -20% since the Japanese company first announced its interest in buying Shire last month.
To fund the deal, Takeda landed a $31 billion bridge loan from JP Morgan Chase Bank, Sumitomo Mitsui Banking and MUFG Bank. The combined company will be headquartered in Japan, with an R&D group in Cambridge, Mass.
Analysts point to Takeda’s interest in establishing a global presence as a primary reason for its interest in acquiring Shire. The combined company will specialize in gastroenterology and neuroscience, as well as rare diseases and plasma-derived therapies, according to Takeda.
“Since its inception, Takeda has transformed into an agile, R&D-driven global pharmaceutical company that is well-positioned to deliver innovative and transformative care to patients around the world,” Takeda president & CEO Christophe Weber said in prepared remarks. “Shire’s highly complementary product portfolio and pipeline, as well as experienced employees, will accelerate our transformation for a stronger Takeda.”
“Over the last 30 years, Shire has become the global leader in treating rare diseases, delivering innovative products that transform patients’ lives. With this combination, Shire helps create an even stronger biopharmaceutical company, with a robust R&D pipeline and expanded global footprint,” Shire chairman Susan Kilsby added.
Job cuts may be on the horizon, according to a report from Endpoints News – Takeda could slash 3,700 jobs in an effort to restructure and address costs, the news outlet said.
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