Shire to Sell Oncology Unit for $2.4 Billion to Servier

Shire specialises in drugs for rare diseases

Shire specialises in drugs for rare diseases

Explaining the move, Shire CEO Flemming Ornskov said that "while the oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire's longer-term strategy", which lies mainly in rare diseases.

The firm, which has its headquarters in Dublin, started looking at offloading the oncology business in December, and said the process considered "multiple potential strategic buyers" across Europe, Japan and the US.

Proceeds from the sale is expected to go towards increasing optionality and Shire will consider returning the proceeds to shareholders through a share buyback.

Sony's Next Xperia Phone Goes All In on the Camera
There is also a fingerprint scanner on the rear and keep in mind that this smartphone does not feature a 3.5mm audio jack. There are features like Smart Stamina, Stamina Mode, Qnovo Adaptive Charging, Quick Charge 3.0 and Qi Wireless Charging.

Still, given the small contribution of the cancer business to Shire's overall profits, Deutsche Bank analysts said this was unlikely to be a deal breaker.

In addition, Takeda Pharmaceutical Co Ltd is still now in the process of considering approaching Shire with an offer to acquire the group, after Nikkei reported earlier in April that Takeda could value Shire at USD55 billion.

Last month, Japanese pharmaceuticals giant Takeda was forced to reveal it was mulling a bid to buy Shire, which boosted the London-listed drugmaker's shares.

Rahul Gandhi On Three-Day Amethi Visit From Today
It was played in the presence of senior BJP leader and Union HRD minister Prakash Javadekar and Delhi BJP chief Manoj Tiwari. Mid-day accepts no responsibility or liability for its dependability, trustworthiness, reliability, and data of the text.

Shire also had debt of around $19 billion as of the end of 2017. Oncology is therefore a small part of Shire's business, but was highlighted by Takeda as one of three therapeutic categories that could be bolstered by merging the two companies.

Shire has a track record of acquisitions, but its biggest ever deal - the $32 billion purchase of Baxalta in 2016 - was widely criticised by shareholders and has left it struggling to handle debt and integrate its various businesses.

But Monday's news that Shire has sold off its cancer treatment unit - which includes its ONCASPAR (leukaemia) and ONIVYDE (pancreas) treatments - has thrown that possible takeover into doubt.

Wholesale Inflation stands at 2.47% in March; manufacturing index rises
The economists predict CPI rose 0.5 per cent in the March period, accelerating from a 0.1 per cent quarterly pace in December. Index of primary articles in WPI declined by 0.5% to 127.4 (provisional) from 128 (provisional) for the previous month.

"This acquisition allows us to establish a direct commercial presence in the United States, the world's leading pharmaceuticals market, and to strengthen our portfolio of marketed products in the territories where Servier is already present".

Latest News