Shire-Baxalta merger
January 12, 2016
CREATING a global top-20
pharmaceutical company in
therapies for rare diseases, Dublin based
Shire Pharmaceuticals has
combined with Baxter spinoff
Baxalta Inc. in a deal worth
approximately $32b, the companies
have announced.
Although shares in Shire fell
more than 8% on news of the
arrangement, Shire’s chief
executive Flemming Ornskov said
the combination with Baxalta
would create the leading specialist
producer of therapies for rare
diseases, an area known for its
high drug prices, with projected
revenues of $20b by 2020.
Shire also claimed the deal would
generate annual operating cost
synergies of more than $500m
within three years and be accretive
to earnings in 2017.
Wayne T. Hockmeyer, Baxalta’s
chairman is expected to become
deputy chairman, and two
additional directors to be included
from the Baxalta Board.
Ornskov continued, “This
proposed combination allows us
to realise our vision of building the
leading biotechnology company
focused on rare diseases.”
The therapeutic areas of business
in the new combined company
include haematology, immunology,
neuroscience, lysosomal storage
diseases, gastrointestinal/endocrine
diseases, hereditary angiodema,
ophthalmics and oncology.
The transaction is expected to
close mid-2016.
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