Shire — who recently sold its cancer business to a French pharma company Servier — said its board unanimously rejected the acquisition offer stating the $60 billion bid undermines the company as well as its growth prospects and pipeline.
Takeda, that earlier failed at acquiring Valeant (VRX) for around $10 billion, has been desperately looking to extend its global reach amid patent expirations and a declining domestic population. It has been looking for companies that develop drugs for gastrointestinal diseases, nervous-system ailments as well as other key treatments. But this deal has now turned into a potential bidding war, as another pharma company has shown interest in acquiring Shire.
Shire, which specializes in drugs for rare diseases, declined the $60-billion takeover offer by Takeda. This was the third approach the Japanese company made since March.
Allergan (AGN) — which is yet to make an official offer — is the second company touted to bid for Shire and has hired financial advisers to assist in this deal.
If Takeda, in the presence of other bidders, manages to acquire Shire, it would be Takeda’s largest-ever deal. This will also tilt the scales a little to the east, and might lead to many other deals in the pharma sector.