Tag Archives: Shire

Shire Selling Oncology Division to French Company Servier for $2.4 billion

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Dublin-based Shire pharmaceutical company has come to an agreement with French firm Servier Laboratories to purchase its oncology business for $2.4 billion ((£1.68 billion). The deal comes before a potential takeover bid by Takeda of Japan could be realized.

Shire’s board gave the OK for the agreement, which is expected to be finalized by the second or third quarter this year. The deal does not need approval by shareholders.
The drug-making giant began its search for a buyer for its oncology wing last December, considering potential companies in Europe, the United States and in Japan. The company is considering an option to return the profits from the sale back to investors via a share buyback program when the current offer period expires. During this time Japanese firm Takeda could still launch a bid.

CEO of Shire, Flemming Ornskov said:

“This transaction is a key milestone for Shire, demonstrating the clear value embedded in our portfolio.

“While the oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire’s longer-term strategy.

“We will continue to evaluate our portfolio for opportunities to unlock further value and sharpen our focus on rare disease leadership with selective disposals of non-strategic assets.

“We are confident that Servier will continue to invest in this business and our colleagues who are expected to transfer as part of the transaction in order to meet the needs of cancer patients globally.”

Shire Buys Foresight Biotherapeutics

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Dublin-based Shire announced its all-cash purchase of privately held Foresight Biotherapeutics, expanding the pharmaceutical company’s ability to develop medicine against viral and bacterial forms of conjunctivitis.

UK-listed Shire has been increasing its investment in eyecare while also pushing for approval from regulators for its own treatment for dry-eye disease, lifitegrast.

“Ophthalmics is a highly attractive growth area for Shire and this acquisition allows us to strengthen our presence,” said Flemming Ornskov, Shire chief executive.

Foresight’s drug, known as FST-100 is a perfect companion medicine to lifitegrast for a pharmaceutical company. If both obtain approval for use then together they will “address two of the leading reasons people seek eyecare treatment,” Mr Ornskov said.

Last year Shire created a dedicated opthalmics division, separate from its main business selling treatments for rare diseases and attention deficit Hyperactivity disorder.

Shire purchased Foresight for $300 million as it’s stock is trading at near-record prices of £57.30, considerably more than the £52.48 per share that AbbVie of the US tried to pay last year in its takeover bid, which eventually fell through.