Servier Laboratories to acquire Shire’s oncology business for $2.4bn

In a strategic move to expand its global presence, French pharmaceutical giant Servier Laboratories has announced a $2.4 billion all-cash acquisition of the oncology business from Irish biotech company Shire. This significant transaction positions Servier to substantially increase its oncology portfolio and establish a direct commercial presence in the United States, the world’s largest biopharmaceutical market.

Strategic Expansion into the US Market

Servier’s acquisition of Shire’s oncology business marks a pivotal entry into the U.S. market, enhancing the French company’s ability to compete on a global scale. The acquired portfolio includes key in-market products such as Oncaspar (pegaspargase), used in treating acute lymphoblastic leukemia (ALL), and the ex-U.S. rights to Onivyde (irinotecan pegylated liposomal formulation), used for treating metastatic pancreatic cancer post-gemcitabine based therapy.

Bolstering Global Oncology Capabilities

In addition to gaining immediate access to established drugs, Servier will also inherit a number of early-stage immuno-oncology pipeline collaborations. These additions are expected to strengthen Servier’s research and development capabilities, particularly in the field of oncology.

Olivier Laureau, President of the Servier Group, emphasized the acquisition’s alignment with strategic goals, stating, “The acquisition of Shire’s oncology franchise enables Servier to meet its strategic ambitions to become a key player in oncology globally. It is a major step in the transformation of the Group.”

Shire’s Strategic Refocus

For Shire, the sale is part of a broader strategy to hone its focus on rare diseases. CEO Flemming Ornskov remarked on the divestiture, “While the Oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire’s longer-term strategy.” This move will allow Shire to streamline its operations and enhance its leadership in rare disease treatments.

Regulatory Approvals and Future Plans

The deal is expected to conclude in the second or third quarter of this year, pending regulatory approvals. Post-acquisition, Servier plans to establish a new subsidiary, Servier Pharmaceuticals, to manage the commercialization of its products in the U.S.

This acquisition is a significant development in the pharmaceutical industry, showcasing how companies like Servier are strategically expanding their global footprint.

By acquiring Shire’s oncology business, Servier not only diversifies its portfolio but also gains crucial access to the lucrative U.S. market. This move is likely to accelerate Servier’s growth and enhance its global competitiveness.

The acquisition of Shire’s oncology business by Servier Laboratories marks a transformative step for the French pharmaceutical giant, allowing it to significantly bolster its position in the global oncology market and establish a direct commercial presence in the U.S.