4th Aug 2015 11:39
LONDON (Alliance News) - Shire PLC on Tuesday said it proposed an all-share merger with US biotechnology company Baxalta Inc in a deal valued at around USD30 billion in July.
The FTSE 100-listed pharmaceutical company said that under the terms of its proposal, Baxalta shareholders would receive 0.1687 Shire American Depositary Receipts with a value of USD45.23, representing a 365 premium to Baxalta's closing share price on Monday.
Shire said Baxalta declined to engage in talks with Shire on the proposal, and Shire has urged the company to enter into substantive talks.
Shire said the deal would create a company with more than 30 planned product launches and the largest rare diseases portfolio in the industry. It said it would target USD20 billion in annual product sales by 2020, should the merger be considered.
"We believe the proposed combination of Shire and Baxalta would be strategically and financially attractive for both of our companies, accelerating our respective growth ambitions and creating the leading global biotech company in rare diseases," said Flemming Ornskov, Shire's chief executive.
Shire shares dropped after news of the proposal was released Tuesday afternoon, down 5.0% to 5,445.00 pence to be the worst performer in the FTSE 100.
By Sam Unsted; [email protected]; @SamUAtAlliance
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