Another year, another round of mega-mergers for the pharmaceuticals and biotechnology sector. This time it’s specialty pharma group Shire (SHP) which, just over a year ago, was on the brink of being taken over itself by US group AbbVie (US:ABBV). Having successfully turned the tables, it now plans to bag US biotech Baxalta (US:BXLT) in a deal worth $32bn (£22bn).
This deal hasn’t come out of the blue. Shire first made its interest in Baxalta known last year. An offer was rejected by Baxalta bosses in July, forcing Shire to turn hostile in August with a renewed all-stock offer worth $45.23 (£30.86) a share, equating to a total deal value of $30bn. However, this offer didn’t pass mustard with Baxalta shareholders who have since demanded a cash portion to sweeten the deal.