What a Buyout Could Mean for Shire
Shares of Shire saw a solid gain on Wednesday after the firm announced that it received an offer to be acquired by Takeda Pharmaceutical.
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Shares of Shire PLC (NASDAQ: SHPG) saw a solid gain on Wednesday after the firm announced that it received an offer to be acquired by Takeda Pharmaceutical.
Takeda said in a statement that buying Shire would enhance its R&D and its reach into the United States, where Shire has a big presence. The firm also mentioned its consideration for a takeover “is at a preliminary and exploratory stage and no approach has been made to the board of Shire.”
According to Reuters, Michael Wegener, managing partner at hedge fund Case Equity Partners, which has a stake in Shire, said:
Takeda publicly saying it is considering an approach for Shire inevitably means that other big pharma players including AbbVie, Novartis, Pfizer et al will equally be running the numbers with a very high likelihood of leading to a competitive M&A multi-bidder situation.
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Takeda says that it has not approached Shire’s board. And under takeover rules in the United Kingdom, it has until April 25 to decide whether to make a bid.
For some quick background: Shire sells treatments for rare diseases and attention deficit disorder. And Takeda believes that buying it could create a global biopharmaceutical leader, boosting its position in the United States in oncology, gastrointestinal diseases and neuroscience.
Shares of Shire were last seen up 15% at $148.65, with a consensus analyst price target of $191.14 and a 52-week range of $123.73 to $192.15.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
