Commenting on Shire’s $32 billion takeover of Baxalta, John Lyon, of Warwick Business School, a Professor of Practice in the Entrepreneurship and Innovation Group and a former Vice President of clinical research firm, Covance, before setting up Photopharmica, developing drugs to fight cancer and infections, said: “It is always good to see deals that make good strategic sense and this is one of them. Shire has set out its future as a global leader in rare diseases and this deal augments that strategy with Baxalta — another specialist in rare diseases — having expertise in bleeding disorders, immunology and oncology.”
“The deal is hardly a surprise,” he added: “Last year Shire sought a deal as a stock purchase and were rebuffed. In the courting process, they put forward an improved offer with a 40% cash component, increasing the value from $45 per share to $48 per share.”
“Shire did not have a smooth year during 2015 when the US Food and Drug Administration rejected the company’s application for a ‘dry eye’ indication, where further clinical trial data was demanded. But this deal, if completed, will add to Shire’s pipeline which makes good sense,” concluded Lyon.