CAMBRIDGE, Mass., Jan. 9 (UPI) — Japan’s Takeda Pharmaceutical Co. said Monday it will purchase U. S.-based cancer drugmaker ARIAD Pharmaceuticals for about $5.2 billion.
Takeda will fund the acquisition by taking on up to $4 billion of new debt and paying for the remainder in cash at $24 each for all 194,389,661 of ARIAD’s shares. The deal, approved by both companies’ board of directors, is expected to close by the end of February, pending regulatory approval and other conditions.
Sarissa Capital, which holds 6.6 percent of ARIAD’s common shares, and each member of ARIAD’s board of directors agreed to tender their shares to complete the purchase by Takeda.
“The acquisition of ARIAD is a unique opportunity that will enable us to positively impact the lives of more patients worldwide, advance our strategic priorities and generate attractive returns for our shareholders,” Christophe Weber, president and chief executive officer of Takeda, said in a statement. “This is a very exciting time for Takeda as we will broaden our hematology portfolio and transform our global solid tumor franchise through the addition of two innovative targeted therapies. Opportunities to acquire such high-quality, complementary targeted therapies do not come often, and we are very excited about the potential for this transaction to benefit patients, our shareholders and other stakeholders. ”
ARIAD is based in Cambridge, Mass. The company’s primary drugs are Iclusig, used in leukemia treatment, and Brigatinib, an anti-cancer ALK inhibitor pending U. S. approval that is expected to have annual sales of over $1 billion.
“We are very pleased to combine with Takeda, which will allow us to not only accelerate our mission to discover, develop and deliver precision therapies to patients with rare cancers, but also deliver immediate and meaningful value to our shareholders through a substantial cash premium,” Paris Panayiotopoulos, president and chief executive officer of ARIAD, said in a statement. “This exciting transaction is a testament to the hard work and dedication of ARIAD’s talented team of employees. We have tremendous respect for Takeda, and I believe our shared commitment to innovation and research-driven cultures will provide for a smooth transition. “
