Takeda’s $62bn acquisition of Shire: A game-changing move for global pharma

In a landmark deal, Takeda Pharmaceutical Company has successfully completed its previously announced acquisition of Shire, an Irish biotech leader specializing in rare diseases, for a staggering $62 billion. This acquisition marks a major step in Takeda’s ongoing transformation into a global powerhouse in biopharmaceuticals, with an expanded footprint and a deeper focus on rare disease treatments.

Takeda’s strategic acquisition was first unveiled in May 2018 when the Japanese pharma giant proposed a cash-and-stock deal to acquire Shire, positioning itself as a more robust R&D-driven biopharma entity headquartered in Japan. The agreement was overwhelmingly approved by both parties, with 89.1% of Takeda’s shareholders and 99.8% of Shire’s shareholders backing the deal.

Under the terms of the deal, Takeda paid $30.33 in cash for each share of Shire, alongside an exchange of its shares. Specifically, shareholders of Shire received either 0.839 Takeda shares or 1.678 American Depositary Shares listed on the New York Stock Exchange.

Following regulatory reviews and approvals, Takeda successfully closed the acquisition earlier than expected. In November 2018, the European Commission granted approval, contingent on the firms’ commitment to divest certain assets, including the SHP647 compound. The acquisition was also cleared by the US Federal Trade Commission in October 2018, and by various global regulatory bodies, including Japan’s Fair Trade Commission and China’s State Administration for Market Regulation.

Strategic Vision for a Global R&D Hub

Christophe Weber, Takeda’s President and CEO, expressed his satisfaction with the successful completion of the deal, highlighting the strong shareholder support and the swift regulatory clearance that accelerated the process. He referred to the acquisition as a transformative moment for Takeda, one that would enhance its capability to deliver innovative medicines to patients globally.

The acquisition bolsters Takeda’s existing portfolio, particularly in oncology, gastroenterology, and rare diseases. With Shire’s expertise in hematology, neuroscience, immunology, and lysosomal storage disorders, the combined entity is set to expand its reach and capabilities significantly.

The Future of Takeda Post-Acquisition

The enlarged Takeda is now poised to generate more than $30 billion in revenue annually, with the majority of earnings expected to come from oncology, gastroenterology, rare diseases, neuroscience, and plasma-derived therapies (PDT). Shire’s vast global presence, with its drugs sold in over 100 countries, complements Takeda’s ongoing R&D efforts, enhancing its competitive positioning in the global pharmaceutical market.

This acquisition not only expands Takeda’s therapeutic focus but also provides the company with new opportunities for growth in high-demand areas like rare diseases and neuroscience, which have increasingly become vital to the global healthcare landscape.