Su­gar­ing the pill?

Financial Mail - - MARKET WATCH -

Takeda Phar­ma­ceu­ti­cal shares lost al­most 5% of their value on Fri­day as in­vestors fret­ted over the size of the deal the Ja­pa­nese com­pany would have to make to seal its record­break­ing pur­chase of Shire Plc.

Shire has re­jected Takeda’s Us$63bn cash-and-stock con­di­tional of­fer, say­ing the of­fer — and two pre­vi­ous of­fers — sig­nif­i­cantly un­der­val­ued its growth prospects and drugs in de­vel­op­ment. The raredis­ease drug maker says talks to de­ter­mine “whether a fur­ther, more at­trac­tive, pro­posal may be forth­com­ing” will con­tinue.

A suc­cess­ful bid would pro­pel the com­pany into the top ranks of global drug mak­ers in Ja­pan’s largest-ever out­bound deal.

Sev­eral an­a­lysts say Takeda, Ja­pan’s big­gest drug maker by sales, will need to sub­stan­tially raise the cash com­po­nent of its of­fer to make it at­trac­tive to Lon­don-listed Shire’s share­hold­ers.

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