Japan pharma giant Takeda to buy Shire for $62B
Japan’s Takeda Pharmaceuticals has announced it will acquire Shire, an Ireland-based drug company, for $62 billion, making Takeda one of the 10 largest pharma firms in the world.
According to Bloomberg, the companies’ combined revenue will be $31.2 billion, placing it just above AbbVie in the ranks of the biggest international drug companies. It was the culmination of a six-week negotiation with Takeda making five bids before reaching an agreement with Shire.
“The two combined create a rich pipeline in all stages—early and late stage, which is very important," Takeda CEO Christophe Weber told analysts and reporters. “We are in a good momentum and in a strong position.”
The acquisition will add Shire drugs like Adderall, a treatment for attention deficit hyperactivity disorder, and lucrative therapies for rare diseases to Takeda’s portfolio. It will also give Takeda a greater presence in the U.S., as more than two-thirds of Shire’s revenue comes from North America—well above Takeda’s 30 percent.
The risk for Takeda comes from the debt it’s assuming to afford the deal. It secured a $31 billion bridge loan with several banks, including JPMorgan Chase, with S&P Global Ratings quickly warning it may downgrade Takeda’s credit rating two notches due to the additional debt.
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John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.