Shares in Japanese drug maker Takeda Pharmaceutical Co yesterday dropped 4.67 percent after it confirmed an unsuccessful US$60 billion takeover bid for Irish drugmaker Shire PLC.
The proposal was rejected, but “discussions between the parties regarding a potential offer are ongoing,” Takeda said.
Meanwhile, a potential rival in its bid to take over Shire said it was no longer considering making an offer.
Analysts had raised the prospect of a bidding war between Takeda and Botox maker Allergan PLC after the global pharma giant said it was also considering making a bid for Shire.
However, Allergan late on Thursday said in a statement that it now “does not intend to make an offer for Shire.”
Takeda’s shares closed at ￥4,857 in Tokyo. Shire yesterday fell as much as 4.4 percent early in London as the prospect of a bidding war receded. Its US depositary receipts closed down 1.1 percent to US$160.74 a share in New York.
Takeda’s cash-and-shares offer valued Shire at ￡42 billion (US$59 billion) and was pitched at the equivalent of ￡46.50 per share.
Shire, which is based in Dublin, but listed in London, said in a statement that it had rejected three takeover approaches from Takeda because they all “significantly undervalued the company, its growth prospects and pipeline.”
However, Shire added that its advisers have entered a dialogue with Takeda to discuss “whether a further, more attractive, proposal may be forthcoming.”
Takeda has been ramping up its takeover ambitions under chief executive officer Christophe Weber as the company seeks growth overseas amid patent expirations and a shrinking domestic population.
A Shire takeover would be Takeda’s largest-ever deal by far. Its most expensive previous purchase was a US$13.7 billion takeover of Nycomed A/S in 2011.
Last year, the company expanded its footprint in the US oncology market with the US$4.7 billion purchase of Ariad Pharmaceuticals Inc.
However, some analysts are concerned that a takeover bid of this magnitude could put too much pressure on Takeda’s own finances.
Additional reporting by Bloomberg
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