Takeda Pharmaceutical Co. is considering its biggest takeover ever — a bid for Lexington’s Shire Plc that could top $50 billion.
Takeda Pharmaceutical Co. is considering its biggest takeover ever — a bid for Shire Plc that could top $50 billion and would boost the Japanese company’s position in drugs for cancer, gastrointestinal diseases and nervous-system ailments.
The acquisition would widen Takeda’s capabilities in key areas and provide it with some treatments that are in the late stages of testing, the company said in a statement Wednesday. Shire, based in Lexington, Massachusetts, and listed in London, gained as much as 26 percent.
The possible deal comes amid a flurry of transactions in the pharmaceutical sector, marked by GlaxoSmithKline Plc’s $13 billion agreement to buy out Novartis AG’s stake in their consumer-health joint venture earlier this week. Pfizer Inc. and Merck KGaA are seeking buyers for their over-the-counter units, and Sanofi has announced more than $16 billion worth of acquisitions this year.
Takeda said its consideration is at a “preliminary and exploratory stage” and it has not formally approached Shire’s board. The Osaka-based company must announce its intentions by 5 p.m. London time on April 25 under U. K. takeover rules, and said there’s no certainty it will make a bid.
Japan’s biggest drugmaker has signaled it’s ready to take on more deals and partnerships as it seeks to build an identity beyond its home market, where a shrinking population limits growth opportunities. With a market value of about $42 billion, it’s smaller than the potential takeover target after Shire’s rally Wednesday.
