US drugs giant finally seals £32bn takeover of Shire

 

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.

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
  • Get to the point
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: Trainee Recruitment Consultant

£20000 - £25000 per annum + OTE £45,000: SThree: SThree Group have been well e...

Ashdown Group: IT Manager / Development Manager - NW London - £58k + 15% bonus

£50000 - £667000 per annum + excellent benefits : Ashdown Group: IT Manager / ...

Recruitment Genius: Sales Consultant / Telemarketer - OTE £20,000

£13000 - £20000 per annum: Recruitment Genius: Scotland's leading life insuran...

Ashdown Group: Training Programme Manager - City, London

£40000 - £45000 per annum + benefits : Ashdown Group: Training Programme Manag...

Day In a Page

Timeless drama of Championship race in league of its own - Michael Calvin

Michael Calvin's Last Word

Timeless drama of Championship race in league of its own
Where the spooks get their coffee fix: The busiest Starbucks in the US is also the most secretive

The secret CIA Starbucks

The coffee shop is deep inside the agency's forested Virginia compound
Revealed: How the Establishment closed ranks over fallout from Loch Ness Monster 'sighting'

How the Establishment closed ranks over fallout from Nessie 'sighting'

The Natural History Museum's chief scientist was dismissed for declaring he had found the monster
One million Britons using food banks, according to Trussell Trust

One million Britons using food banks

Huge surge in number of families dependent on emergency food aid
Excavation at Italian cafe to fix rising damp unearths 2,500 years of history in 3,000 amazing objects

2,500 years of history in 3,000 amazing objects

Excavation at Italian cafe to fix rising damp unearths trove
The Hubble Space Telescope's amazing journey, 25 years on

The Hubble Space Telescope's amazing journey 25 years on

The space telescope was seen as a costly flop on its first release
Did Conservative peer Lord Ashcroft quit the House of Lords to become a non-dom?

Did Lord Ashcroft quit the House of Lords to become a non-dom?

A document seen by The Independent shows that a week after he resigned from the Lords he sold 350,000 shares in an American company - netting him $11.2m
Apple's ethnic emojis are being used to make racist comments on social media

Ethnic emojis used in racist comments

They were intended to promote harmony, but have achieved the opposite
Sir Kenneth Branagh interview: 'My bones are in the theatre'

Sir Kenneth Branagh: 'My bones are in the theatre'

The actor-turned-director’s new company will stage five plays from October – including works by Shakespeare and John Osborne
The sloth is now the face (and furry body) of three big advertising campaigns

The sloth is the face of three ad campaigns

Priya Elan discovers why slow and sleepy wins the race for brands in need of a new image
How to run a restaurant: As two newbies discovered, there's more to it than good food

How to run a restaurant

As two newbies discovered, there's more to it than good food
Record Store Day: Remembering an era when buying and selling discs were labours of love

Record Store Day: The vinyl countdown

For Lois Pryce, working in a record shop was a dream job - until the bean counters ruined it
Usher, Mary J Blige and Will.i.am to give free concert as part of the Global Poverty Project

Mary J Blige and Will.i.am to give free concert

The concert in Washington is part of the Global Citizen project, which aims to encourage young people to donate to charity
10 best tote bags

Accessorise with a stylish shopper this spring: 10 best tote bags

We find carriers with room for all your essentials (and a bit more)
Paul Scholes column: I hear Manchester City are closing on Pep Guardiola for next summer – but I'd also love to see Jürgen Klopp managing in England

Paul Scholes column

I hear Manchester City are closing on Pep Guardiola for next summer – but I'd also love to see Jürgen Klopp managing in England