Drugs maker flogs £1.6bn arm to French

DRUG-maker Shire is selling its cancer drugs business to French rival Servier for £1.6bn as it braces for a possible £32bn bid battle with Japan’s Takeda.

Shire, which also makes the attention deficit drug Adderall, may get a takeover offer from the Japanese firm which expressed interest last month. However, Takeda had highlighted oncology as one of the key areas behind the potential takeover, so Shire’s sale of the oncology division could deter the pursuit.

Takeda has until April 25 to announce whether or not it will bid for Dublin-based Shire, which has a market value of around £32bn.

Shire said the oncology business was not core to its longer-term strategy and it was also considering selling other divisions. Chief executive Flemming Ornskov, 60, said it would consider returning cash from the sale to shareholders depending on whether Takeda makes a move.