Shire buys Baxalta in $32-bn deal

Irish specialty biopharmaceutical company Shire Plc has agreed to buy Baxalta, a global biopharmaceutical leader in manufacturing therapies for orphan diseases and underserved conditions, in a deal worth $ 32 billion. Under the agreement, Baxalta shareholders will receive $ 18 in cash and 0.1482 Shire ADS per Baxalta share. The merged entity will lead to a creation of a global leader in rare diseases with a sustainable platform for future innovation and growth.
 
The combination of Baxalta and Shire will create the number one rare diseases platform in revenue and pipeline depth, with innovative products for niche diseases such as haematology, immunology, neuroscience, lysosomal storage diseases, gastrointestinal/endocrine, and hereditary angioedema (HAE). The combined company will also possess a growing franchise in oncology, with approved products and innovative compounds in development, as well as a robust late-stage ophthalmic pipeline.
   
“This proposed combination allows us to realise our vision of building the leading biotechnology company focused on rare diseases. 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,” said Flemming Ornskov, chief executive officer, Shire.
 
The combined portfolio will have an expanded range of therapeutic areas with more than 60 programs in development, including over 50 that will address rare diseases and the newly-approved Baxalta products Adynovate, Vonvendi and Obizur. Shire anticipates more than 30 recent and planned product launches from the combined pipeline, contributing approximately $ 5 billion in annual revenues by 2020.
 
Further, the combined company will benefit from expanded geographic reach across more than 100 countries, with a high-quality commercial organisation and world-class manufacturing operations. Through a balanced portfolio and expanded therapeutic expertise and capabilities, the combination will enhance revenue diversification and optionality for the business, while strong cash flows will increase financial and operational scale.
 
Baxalta, launched in 2015 following separation from Baxter International, has a well-established haematology portfolio based on its heritage and legacy of leadership in haemophilia. “Baxter fully supports the proposed combination of Shire and Baxalta, which will create a major biotechnology company and global leader in rare diseases,” commented Jose E Almeida, chairman and chief executive officer, Baxter International.