Type of information: Pipeline acquisition
Acquired company: Shire's oncology business (UK-USA)
Acquiring company: Servier (France)
Amount: $2.4 billion (€1.94 billion)
- • On April 16, 2018, Shire announced that it has entered into a definitive agreement with Servier to sell its Oncology business for $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 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.
- The transaction is expected to close in the second or third quarter of 2018.
- According to Shire, this business is not core to its longer-term strategy. The group intends to return the proceeds of this sale to shareholders through a shareholder-approved share buyback after the current offer period regarding Takeda’s possible offer for Shire concludes.
- The transaction covers the transfer of Shire’s Oncology business including in-market products Oncaspar® (pegaspargase), a component of multi-agent treatment for acute lymphoblastic leukemia (ALL) and ex-U.S. rights to Onivyde® (irinotecan pegylated liposomal formulation), a component of multi-agent treatment for metastatic pancreatic cancer post gemcitabine-based therapy. The portfolio also includes Calaspargase Pegol (CalPEG), which is under FDA review for the treatment of ALL, and early stage immuno-oncology pipeline collaborations.