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Shire completes $32bn Baxalta merger

Creates world leading rare diseases specialist

ShireShire has finalised its $32bn merger with Baxalta, creating one of the world's leading firms specialising in rare diseases and conditions.

The deal sees Baxalta become a wholly owned subsidiary of Shire, with the combination set to deliver double-digit sales growth of more than $20bn by 2020, according to a company statement.

Flemming Ornskov, chief executive offer at Shire, said that the biotechnology company is now the “number one rare disease platform based on both revenue and pipeline programmes”.

“With multiple high-value franchises, each with best-in-class products and a robust innovative portfolio,” he added, “we further extend our capabilities for innovation and sustainable growth with patients at the centre of everything we do.”

Shire now has over 50 rare diseases programmes in various stages of clinical development and, together with its already marketed products, anticipates these will account for around 65% of its projected annual revenue by 2020.

The pipeline will focus on therapy areas including haematology, immunology, neuroscience, lysosmal storage disorders, gastrointestinal/endocrine and disease and hereditary angioedema (HAE), and brings Baxalta's haemophilia franchise into the fold.

Baxalta's shareholders will receive a combination of $18.00 in cash and 0.1482 Shire shares for each Baxalta share, with the cash addition having been struck after initial reluctance from Baxalta to pursue an all-stock deal.

The merger went ahead despite concern new tax inversion rules issued by the US government earlier this year would prove to be a stumbling block. The Ireland-domiciled firm nevertheless predicts that the deal will deliver $500m in annual cost-savings over the next three years.

Article by
Rebecca Clifford

3rd June 2016

From: Sales

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