US drugs giant finally seals £32bn takeover of Shire
Friday 18 July 2014
The FTSE 100 big-pharma player Shire celebrated a £32bn takeover by US suitor AbbVie with record results as the two companies beat a Takeover Panel deadline to agree a firm offer.
The UK firm unveiled a 22 per cent rise in quarterly revenues to a record $1.5bn (£877m) and upgraded profit targets for the year as its chief executive Flemming Ornskov called the performance “a testament to the value AbbVie sees in our company”.
AbbVie’s fifth offer for Shire – worth £53.19 in cash and shares – adds to a clutch of major deals in the sector this year. The firm has succeeded in landing a UK target where larger rival Pfizer failed after an unsuccessful and controversial bid for AstraZeneca.
The US company will also pay a break fee of 3 per cent of the value of the offer – worth £960m – to Shire if the deal fails to go through, according to the offer document.
The two companies have been locked in talks in New York over the fine print of the deal, which AbbVie is pushing for to broaden its portfolio and move its tax base to the UK. This would cut its tax rate from 22 per cent to around 13 per cent under a so-called “inversion” deal.
Shire’s chair Susan Kilsby is believed to have been pushing for the big break fee due to increasing political risks around such tax deals as a US Senator has put forward legislation to make them more difficult, potentially reducing AbbVie’s tax benefits.
But AbbVie has also coveted Shire to reduce its reliance on rheumatoid arthritis treatment Humira, which soon loses patent protection. Shire’s best-known product – hyperactivity drug Vyvanse – saw sales rose 20 per cent to $360m over the quarter, but the company also reported strong sales of treatments for rare diseases from the ViroPharma business it bought for $4.2bn last year.
Sales of Cinryze, ViroPharma’s treatment for a rare blood disorder which causes swelling, were up 37 per cent year on year to $129.9m.
Shire was founded in 1986 by a group of five scientists. It is listed on the London Stock Exchange, has its tax base in Dublin but sells most of its products in North America.
AbbVie’s pursuit of Shire started in early May, just as AstraZeneca was fighting off Pfizer. The US firm was formed last year when Abbott Laboratories split into two companies, a medical products business which retained the Abbott name and a pharmaceuticals firm which became AbbVie.
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Nigel Farage defends Kerry Smith 'ch***y' comment: 'If you are going for a Chinese, what do you say you’re going for?'
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Sony hack: Angelina Jolie branded 'seriously out of her mind' in further embarrassing leaked email saga
Panic Saturday: 13 million Britons spend £1.2bn – while 13 million others across the country live in poverty unable to afford food
iJobs Money & Business
£20000 - £25000 per annum + OTE £40,000 + Car + Pension: SThree: SThree are a ...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £25000 per annum + OTE £35000: SThree: SThree are a global FTSE 250 b...
£20000 - £25000 per annum + OTE £35K - £45K: SThree: SThree Group have been we...