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4-Traders Homepage  >  Equities  >  London Stock Exchange  >  Shire    SHP   JE00B2QKY057

SHIRE (SHP)
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Shire plc Shire Plc : Shire Announces Sale Of Oncology Business To Servier For $2.4 Billion

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04/16/2018 | 08:56am CEST
TIDMSHP 
 
 
   Shire Announces Sale of Oncology Business to Servier for $2.4 Billion 
 
 
   -- Sale of Oncology business unlocks embedded value within Shire's portfolio 
      and sharpens focus on core areas reinforcing our leadership in rare 
      diseases 
 
   -- Oncology business provides Servier S.A.S. with an immediate presence in 
      the U.S.,  enhancing its commitment to addressing unmet patient needs in 
      oncology 
 
 
   Dublin, Ireland - April 16, 2018 - Shire plc (LSE: SHP, NASDAQ: SHPG) 
the leading global biotechnology company focused on rare diseases 
announces today that it has entered into a definitive agreement with 
Servier S.A.S. ("Servier") to sell its Oncology business for $2.4 
billion.  Shire's Oncology business includes in-market products 
ONCASPAR(R) (pegaspargase), a component of multi-agent treatment for 
acute lymphoblastic leukemia (ALL) and ex-U.S. rights to ONIVYDE(R) 
(irinotecan pegylated liposomal formulation), a component of multi-agent 
treatment for metastatic pancreatic cancer post gemcitabine-based 
therapy.  The portfolio also includes Calaspargase Pegol (Cal-PEG), 
which is under FDA review for the treatment of ALL and early stage 
immuno-oncology pipeline collaborations. 
 
   Flemming Ornskov, M.D., M.P.H., Shire Chief Executive Officer, 
commented: 
 
   "This transaction is a key milestone for Shire, demonstrating the clear 
value embedded in our portfolio.  While the Oncology business has 
delivered high growth and profitability, we have concluded that it is 
not core to Shire's longer-term strategy.  We will continue to evaluate 
our portfolio for opportunities to unlock further value and sharpen our 
focus on rare disease leadership with selective disposals of 
non-strategic assets. 
 
   "We are confident that Servier will continue to invest in this business 
and our colleagues who are expected to transfer as part of the 
transaction in order to meet the needs of cancer patients globally. 
 
   "The proceeds from the transaction increase optionality and Shire's 
Board will consider returning the proceeds of the sale to shareholders 
through a shareholder-approved share buyback after the current offer 
period regarding Takeda's possible offer for Shire concludes." 
 
   Olivier Laureau, Servier Group President, commented: 
 
   "The acquisition of Shire's oncology franchise enables Servier to meet 
its strategic ambitions to become a global key player in oncology. As an 
essential step in the evolution of the Group, this acquisition allows us 
to establish a direct commercial presence in the United States, the 
world's leading pharmaceuticals market, and to strengthen our portfolio 
of marketed products in the territories where Servier is already 
present. Our goal is to bring these treatments to greater numbers of 
cancer patients around the world.  We thoroughly look forward to 
welcoming Shire's oncology teams who will join Servier after the 
closing." 
 
   Transaction details 
 
   Under the terms of the agreement, Servier has agreed to acquire Shire's 
Oncology business for a total consideration of $2.4 billion, in cash, 
upon completion.  In 2017, the Oncology business generated revenues of 
$262 million. The total consideration represents a revenue multiple of 
9.2 times 2017 revenues.  The transaction covers the transfer of Shire's 
Oncology business including in-market products ONCASPAR(R) 
(pegaspargase), a component of multi-agent treatment for acute 
lymphoblastic leukemia (ALL) and ex-U.S. rights to ONIVYDE(R) 
(irinotecan pegylated liposomal formulation), a component of multi-agent 
treatment for metastatic pancreatic cancer post gemcitabine-based 
therapy.  The portfolio also includes Calaspargase Pegol (Cal-PEG), 
which is under FDA review for the treatment of ALL, and early stage 
immuno-oncology pipeline collaborations. 
 
   The gross assets that are the subject of the transaction are 
approximately $1.6 billion and the profits attributable to the assets 
being transferred are approximately $140 million, excluding depreciation, 
amortization and other direct and indirect costs. 
 
   Transaction closing 
 
   This transaction constitutes a Class 2 transaction for the purposes of 
the U.K. listing rules and, as such, Shire shareholder approval is not 
required. The transaction has been approved by the Board of Directors 
and is expected to close in the second or third quarter of 2018. 
 
   Transaction background 
 
   Shire's Board of Directors initiated the potential divestment of the 
Oncology business in December 2017.  The process, which commenced in 
January 2018, identified multiple potential strategic buyers across the 
U.S., Europe and Japan. 
 
   For further information please contact: 
 
 
 
 
Investor Relations 
Christoph Brackmann   [email protected]    +41 795 432 359 
Sun Kim               [email protected]                +1 617 588 8175 
Robert Coates         [email protected]               +44 203 549 0874 
 
Media 
Katie Joyce           [email protected]                 +1 781 482 2779 
 
 
   NOTES TO EDITORS 
 
   Stephen Williams, Deputy Company Secretary, is responsible for arranging 
the release of this announcement. 
 
   Inside Information 
 
   This announcement contains inside information. 
 
   About Shire 
 
   Shire is the global leader in serving patients with rare diseases. We 
strive to develop best-in-class therapies across a core of rare disease 
areas including hematology, immunology, genetic diseases, neuroscience, 
and internal medicine with growing therapeutic areas in ophthalmics and 
oncology. Our diversified capabilities enable us to reach patients in 
more than 100 countries who are struggling to live their lives to the 
fullest. 
 
   We feel a strong sense of urgency to address unmet medical needs and 
work tirelessly to improve people's lives with medicines that have a 
meaningful impact on patients and all who support them on their journey. 
 
   www.shire.com 
 
   About Servier 
 
   Servier is an international pharmaceutical company governed by a 
non-profit foundation, with its headquarters in France (Suresnes). With 
a strong international presence in 148 countries and a turnover of 4.152 
billion euros in 2017, Servier employs 21,600 people worldwide. Entirely 
independent, the Group reinvests 25% of its turnover (excluding generic 
drugs) in research and development and uses all its profits for 
development. Corporate growth is driven by Servier's constant search for 
innovation in five areas of excellence: cardiovascular, 
immune-inflammatory and neuropsychiatric diseases, cancers and diabetes, 
as well as by its activities in high-quality generic drugs. 
 
   www.servier.com 
 
   Forward-Looking Statements 
 
   Statements included herein that are not historical facts, including 
without limitation statements concerning future strategy, plans, 
objectives, expectations and intentions, projected revenues, the 
anticipated timing of clinical trials and approvals for, and the 
commercial potential of, inline or pipeline products, are 
forward-looking statements. Such forward-looking statements involve a 
number of risks and uncertainties and are subject to change at any time. 
In the event such risks or uncertainties materialize, Shire's results 
could be materially adversely affected. The risks and uncertainties 
include, but are not limited to, the following: 
 
 
   -- Shire's products may not be a commercial success; 
 
   -- increased pricing pressures and limits on patient access as a result of 
      governmental regulations and market developments may affect Shire's 
      future revenues, financial condition and results of operations; 
 
   -- Shire depends on third parties to supply certain inputs and services 
      critical to its operations including certain inputs, services and 
      ingredients critical to its manufacturing processes. Any disruption to 
      the supply chain for any of Shire's products may result in Shire being 
      unable to continue marketing or developing a product or may result in 
      Shire being unable to do so on a commercially viable basis for some 
      period of time; 
 
   -- the manufacture of Shire's products is subject to extensive oversight by 
      various regulatory agencies. Regulatory approvals or interventions 
      associated with changes to manufacturing sites, ingredients or 
      manufacturing processes could lead to, among other things, significant 
      delays, an increase in operating costs, lost product sales, an 
      interruption of research activities or the delay of new product launches; 
 
   -- the nature of producing plasma-based therapies may prevent Shire from 
      timely responding to market forces and effectively managing its 
      production capacity; 
 
   -- Shire has a portfolio of products in various stages of research and 
      development. The successful development of these products is highly 
      uncertain and requires significant expenditures and time, and there is no 
      guarantee that these products will receive regulatory approval; 
 
   -- the actions of certain customers could affect Shire's ability to sell or 
      market products profitably. Fluctuations in buying or distribution 
      patterns by such customers can adversely affect Shire's revenues, 
      financial conditions or results of operations; 
 
   -- failure to comply with laws and regulations governing the sales and 
      marketing of its products could materially impact Shire's revenues and 
      profitability; 
 
   -- Shire's products and product candidates face substantial competition in 
      the product markets in which it operates, including competition from 
      generics; 
 
   -- Shire's patented products are subject to significant competition from 
      generics; 
 
   -- adverse outcomes in legal matters, tax audits and other disputes, 
      including Shire's ability to enforce and defend patents and other 
      intellectual property rights required for its business, could have a 
      material adverse effect on the Shire's revenues, financial condition or 

(MORE TO FOLLOW) Dow Jones Newswires

04-16-18 0255ET

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