Shire to Sell Oncology Unit for $2.4 Billion to Servier

Shire specialises in drugs for rare diseases

Drugmaker Shire has agreed to sell its oncology business to a French rival, putting into question whether a bid for the FTSE 100 firm from Japanese suitor Takeda will emerge.

Shares in Ireland-based biotech Shire have zoomed up two per cent this morning after it revealed it will sell its oncology business to France's Servier for $2.4bn (£1.7bn) as it seeks to become a leader in rare disease treatment.

Shire's chief executive Flemming Ornskov called the deal a "key milestone" for the firm, which clearly demonstrates the value embedded in its portfolio.

Takeda said earlier this year that it might make an offer for Shire to beef up its core therapeutic areas. The drugmaker said its board will consider using proceeds for a stock buyback after Takeda decides whether to go through with its contemplated offer.

The UK Takeover Panel gave the Japanese firm a deadline of April 25 to announce a firm intention to bid or walk away. Takeda declined to comment further on Monday.

Woolworths supermarkets hit by IT outage
A Woolworths spokeswoman told SBS News the temporary outage hit all its stores. Others said stores were being closed and that they were being turned away.

The proceeds from the transaction, which is expected to close in this or next quarter, would "increase optionality".

According to the company, its board of directors began scouting divestments for the oncology business in December 2017, identifying "multiple potential strategic buyers across the US, Europe and Japan" a month later.

Shire itself also has a track record of acquisitions, but its biggest ever deal - the $32 billion purchase of Baxalta in 2016 - was widely criticised by shareholders. In 2017, the oncology business generated revenues of $262 million. The Irish-headquartered pharma, which has increasingly turned its focus to rare disease in recent years, had rights to chemotherapy agent Oncaspar and pancreatic cancer treatment Onivyde, both of which are on the market.

The portfolio also includes Calaspargase Pegol (Cal-PEG), which is under United States review for the treatment of ALL and early stage immuno-oncology pipeline collaborations, the firm noted.

Related news:

Hot News

isis-killer-beheading-video-story-top Inmates Killed, 17 Injured During Incident at Lee Correctional
Apr 16, 2018 - 15:52
The department added that the State Law Enforcement Division (SLED) were assisting prison officials in its investigation. In March, inmates at the prison held an officer hostage after taking control of a dorm room, The State reported.

isis-killer-beheading-video-story-top Sensex tanks 293 points on weak Asian cues; Nifty below 10400-mark
Apr 16, 2018 - 15:43
The NSE Nifty index was trading 13 points down at 10,468, while the BSE Sensex was down 51 points at 34,141 around 10:50 am (IST). Foreign institutional investors (FIIs) sold shares worth Rs 399.59 crore on net basis on Friday, provisional data showed.

isis-killer-beheading-video-story-top Sony Xperia XZ2 Premium: Specs, release date and price
Apr 16, 2018 - 14:25
There are features like Smart Stamina, Stamina Mode, Qnovo Adaptive Charging, Quick Charge 3.0 and Qi Wireless Charging. Talking about the specifications, there is a 5.8-inch 4K (2160 x 3840) display on the front with HDR playback support.

isis-killer-beheading-video-story-top Enough is enough: Boris Johnson leads media charge on Syria strikes
Apr 16, 2018 - 14:20
On the same show, Jeremy Corbyn expressed his unease over the strikes and criticised the prime minister for not recalling Parliament to vote on the issue.

isis-killer-beheading-video-story-top New Star Wars Han Solo TV Spot Teases More Of The Story
Apr 16, 2018 - 13:50
And that's exactly where Han Solo find himself in this exclusive image from the film, as seen in the forthcoming issue of Empire . The next scene we get appears to be the first time that Han Solo and Chewbacca actually talk, as Han is asking the Wookie's name.

isis-killer-beheading-video-story-top Premier League title can help Man City grow in stature - Pep Guardiola
Apr 16, 2018 - 13:35
With 28 league victories so far, City need three more wins to top Chelsea's record of 30 Premier League wins in a season. It was always a matter of when rather than if City would be champions after they led the way for most of the season.

isis-killer-beheading-video-story-top Mourinho Slams Stars As Man City Claim The Title
Apr 16, 2018 - 13:20
I understand how to win. "They won the title because they were the best team, because they won a great amount of points". In truth, City have looked down on everyone this season virtually since the first ball was kicked last August.

isis-killer-beheading-video-story-top DUP backs Theresa May's decision to authorise air strikes in Syria
Apr 16, 2018 - 13:13
Meanwhile Labour leader Jeremy Corbyn has said Parliament should have been given a vote ahead of the strikes. British Prime Minister Theresa May described the strike as "limited and targeted".

isis-killer-beheading-video-story-top California woman who drove family off cliff was drunk: sheriff
Apr 16, 2018 - 13:10
Devonte drew national attention after he was photographed in tears while hugging a white police officer during a 2014 protest. She says the six kids were regularly punished for common childlike and adolescent behavior, such as laughing too loudly.

Celgene (NASDAQ:CELG) Stake Raised by Alliancebernstein LP
Apr 16, 2018 - 12:52
Barclays Capital has "Buy" rating and $105.0 target. (NYSE:C) has "Neutral" rating given on Monday, December 21 by Credit Suisse. Sustainable Insight Capital Management LLC bought a new position in shares of Celgene during the 2nd quarter worth $1,636,000.

isis-killer-beheading-video-story-top Conte tells Chelsea players: If not for me, play for this badge
Apr 16, 2018 - 12:09
Chelsea avoided further damage seven minutes before the break - James Ward-Prowse's long-range effort forcing Thibaut Courtois into action.

isis-killer-beheading-video-story-top Britain denies Russian claims that it staged Syria chemical attack
Apr 16, 2018 - 11:58
He said there was a heightened "danger of escalation" because of the Russian military presence in Syria . He added that the Russian military has proof of British involvement, but didn't immediately present it.

isis-killer-beheading-video-story-top IRS Awards Tax Filing Extension for Santa Barbara County
Apr 16, 2018 - 11:40
While many Americans enjoy getting a tax refund, others would rather have access to that money throughout the year. To find out how much you have to pay, you can use the payment estimator provided by the IRS on their website .

isis-killer-beheading-video-story-top US Says It's Still 'Locked And Loaded' For New Strikes In Syria
Apr 16, 2018 - 11:27
It comes as President Trump has defended his use of the term " mission accomplished " following the weekend's airstrikes. McKenzie said the Him Shinshar chemical-weapons storage facility near Homs was hit by 22 missiles.

isis-killer-beheading-video-story-top At $58.97 iShares MSCI Global Impact ETF (MPCT) Forms H&S Pattern
Apr 16, 2018 - 10:46
The Massachusetts-based Boston Advsr Ltd Liability Corporation has invested 0.1% in ETFS-E Fund MSCI China A GO ETF (NASDAQ:CASH). ETFS-E Fund MSCI China A GO ETF (NASDAQ:CASH)'s earnings release is expected by WallStreet on April, 25, according to RTT.