company Shire plc (SHPG 152.48, +0.29, +0.19%) based
in Ireland announced this morning the sale of its Oncology business to Servier
S.A.S. for $2.4 bln in cash.
Servier is an international pharmaceutical company governed by a non-profit foundation, headquartered in France (Suresnes). Entirely independent, the Group reinvests 25% of its turnover (excluding generic drugs) in research and development and uses all its profits for development. The company is focused in five areas: cardiovascular, immune-inflammatory and neuropsychiatric diseases, cancers, and diabetes, as well as activities in generic drugs.
Today’s deal includes in-market products ONCASPAR (pegaspargase), a component of multi-agent treatment for acute lymphoblastic leukemia (ALL) and ex-U.S. rights to ONIVYDE (irinotecan pegylated liposomal formulation), a component of multi-agent treatment for metastatic pancreatic cancer post gemcitabine-based therapy. The portfolio also includes Calaspargase Pegol (Cal-PEG), which is under FDA review for the treatment of ALL and early stage immuno-oncology pipeline collaborations. Per Shire management, the deal culminates a nearly four-month strategic exploration of the business which began back in December 2017.
Shire noted that in 2017, the Oncology business generated revenues of $262 mln, or just shy of 2% of overall FY sales. The two parties noted that deal has been approved by the Board of Directors and is expected to close in Q2 or Q3 of 2018. The gross assets that are the subject of the transaction are about $1.6 bln and the profits attributable to the assets being transferred are about $140 mln, excluding depreciation, amortization, and other direct and indirect costs.
Shares of SHPG have been enjoying a higher trading bias lately due in part to reports of a possible offer for the company from Japanese drug-maker Takeda Pharma (TKPYY 23.43, +0.45, +2.0%). Takeda issued a press release on March 28 noting its interest in making an offer for Shire plc. Today’s deal could make a Shire purchase by Takeda more reasonable from a monetary standpoint. Takeda has until April 25 to make an offer for Shire – per UK acquisition law – leaving just over one calendar week to get a formal proposal out there.
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