Shire’s acquisition of Baxalta headlines strong start to healthcare M&A in 2016

Shire purchased Dyax for $5.9 billion in November 2015 in addition to NPS Pharmaceuticals for $5 billion in February 2015


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With Shire's acquisition of Baxalta International expected to generate sales of $20 billion by 2020, the deal marks a strong start to healthcare Mergers and Acquisitions (M&A) for 2016, following on from a record-breaking year in which global transactions totaled $680 billion in 2015, according to research and consulting firm GlobalData.

Shire agreed to purchase US-based Baxalta for $32 billion after six months of hot pursuit. Shire reported that it has offered to pay $18 in cash and 0.1482 of its American depositary receipts for each Baxalta share, representing a total value of $45.57 per share and a 37.5% premium above Baxalta's closing price on August 3, 2015.

Mr Gianfranco Zeppetelli, GlobalData's Deals Analyst, says Shire has consolidated its position as a leading player in the treatment of rare diseases.

He explains: "Baxalta develops biotech treatments for rare blood conditions, cancers and immune system disorders and would provide Shire with a strong portfolio of hemophilia treatments, which accounted for 22% of the total global sales in 2014.

"Additionally, the acquisition further reduces Shire's dependence on its flagship treatment and primary sales generator Vyvanse."


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