Shares of Shire PLC (NASDAQ: SHPG) saw a solid gain on Wednesday after the firm announced that it received an offer to be acquired by Takeda Pharmaceutical.
Takeda said in a statement that buying Shire would enhance its R&D and its reach into the United States, where Shire has a big presence. The firm also mentioned its consideration for a takeover “is at a preliminary and exploratory stage and no approach has been made to the board of Shire.”
According to Reuters, Michael Wegener, managing partner at hedge fund Case Equity Partners, which has a stake in Shire, said:
Takeda publicly saying it is considering an approach for Shire inevitably means that other big pharma players including AbbVie, Novartis, Pfizer et al will equally be running the numbers with a very high likelihood of leading to a competitive M&A multi-bidder situation.
Takeda says that it has not approached Shire’s board. And under takeover rules in the United Kingdom, it has until April 25 to decide whether to make a bid.
For some quick background: Shire sells treatments for rare diseases and attention deficit disorder. And Takeda believes that buying it could create a global biopharmaceutical leader, boosting its position in the United States in oncology, gastrointestinal diseases and neuroscience.
Shares of Shire were last seen up 15% at $148.65, with a consensus analyst price target of $191.14 and a 52-week range of $123.73 to $192.15.
24/7 Wall St.Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
