Date
17 January 2017
Shire's takeover of Baxalta is expected to create the world's largest maker of drugs for rare diseases. Photo: Bloomberg
Shire's takeover of Baxalta is expected to create the world's largest maker of drugs for rare diseases. Photo: Bloomberg

Drugmaker Shire to buy Baxalta in US$32 bln deal

Dublin-based Shire Plc announced Monday that it is buying US firm Baxalta International in a US$32 billion deal that will create the world’s largest rare-disease drugmaker.

London-listed Shire, which first approached Illinois-based Baxalta with an all-stock offer in July, clinched a deal after six months by adding a cash sweetener.

The company will pay US$18 in cash and 0.1482 Shire American depositary share per Baxalta share, implying a total value of US$45.57 per share based on Jan. 8 prices, Reuters reported.

It marks a 37.5 percent premium to Baxalta’s price on Aug. 3, before Shire went public with its interest.

Baxalta, which was spun off last year from Baxter International Inc., had in August rejected Shire’s previous US$30 billion all-stock offer, saying that it significantly undervalued the company.

Baxalta makes drugs used in treatments for rare blood conditions, cancers and immune system disorders.

The Shire-Baxalta deal marks a strong start to mergers and acquisitions in healthcare in 2016 after the sector had its biggest deal-making streak in history last year, Reuters noted.

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