Takeda proposes sale of IBD pipeline to close Shire deal

By Maggie Lynch

- Last updated on GMT

(Image: Getty/kritchanaut)
(Image: Getty/kritchanaut)

Related tags acquistion Mergers and acquisitions Sales Drug companies Drug Drug supply chain

Takeda is in talks to sell Shire’s experimental inflammatory bowel disease pipeline in an effort to meet European regulators approval for the acquisition.

Last week, Takeda Pharmaceutical Company stated that it had been in discussions with the European Commission to possibly divest Shire’s inflammatory bowel disease (IBD) drug, SHP647. The drug is in the final stages of testing for the treatment of Crohn’s disease and ulcerative colitis.

Takeda already has a drug for these two conditions on the market, the monoclonal antibody (mAb) Entyvio (vedolizumab). In FY18, Entyvio brought in $1.83bn (€1.61bn) for the company's specialty portfolio in a statement.

The aim of selling the IBD drug candidate is to facilitate the European Union (EU)’s antitrust review​, in which the approval decision may take into account the possible competition within the company’s own pipeline.

The company said it is not in discussions regarding any other assets and does not anticipate any delay in closing the deal. European regulators are faced with a November 6, 2018, deadline to complete the review of this possible sale.

The history of the deal

In May of 2018, Takeda agreed to buy Shire​ for $62.11 billion (€48.4 billion). The Japanese drugmaker made a bid of 46% cash and 54% stock, allowing Shire shareholders to own around half of the merged company. This deal came after Shire initially rejected Takeda’s proposals​.

The acquisition of Shire has already received approval from China, the US Federal Trade Commission, Brazil and Japan. Europe is the final major market to make its decision.

Takeda provided us with a statement saying that there is a strategic and financial rationale for undertaking the acquisition of Shire, and it would allow for a biopharmaceutical leader headquartered in Japan – well positioned to deliver medicines around the world.

A spokesperson for the company further stated that, until the close of the transaction, the company is not able to provide any further details.

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