Japan-based Takeda Increases Offer to Shire

Takeda Pharmaceutical, based in Japan, has boosted its offer to acquire Shire to £44.3 billion or $62 billion on Friday in an attempt to persuade the specialist of rare-disease treatments into negotiations after being rejected on three prior proposals.

The largest drug maker in Japan increased the cash and shares bid to £47 per share, which was an increase of 1% from its proposal of before of £46.50 pounds. It increased its cash component to £21 pound per share, representing a shift that Wall Street said was needed for it to be appealing to shareholders at Shire.

Shire announced that it was considering this new approach by Takeda. The most recent proposal is 7% higher than the first offer made by Takeda and 58% higher that the share price of Shire prior to any speculation of a takeover, said the Japanese company.

However, shares of Shire on Friday were far below the most recent approach and down 3% the day after Allergan, made the decision not to pursue its bid Thursday, ending any prospect of there being a bidding battle.

Allergan, the maker of botox, had seen shares drop 7% after its interest was reported.

Takeda investors are cautious as well, as its shares are down by nearly 5% on Friday as worries mounted for investors over the company’s purchase at a record setting price of the company, that is listed in London.

The industry has seen several deals around the world, as pharmaceuticals seek scale and are searching for promising assets to build up their pipelines.

Takeda announced that it wanted to reach an agreement with Shire on a deal and allow for an extension to a deadline of April 25 imposed by the regulator in Britain to provide a firm offer.

Shire, which makes drugs for the treatment of attention deficit hyperactivity disorder or ADHD, rejected three previous approaches saying all three undervalued the business significantly and the drugs that are in development.

Acquiring Shire would be the biggest every acquisition overseas by a Japanese company and push Takeda, led by Christophe Weber a Frenchman, it the top echelon of worldwide drug makers.

It would be the boldest move Weber has made significantly boosting the position of Takeda in treatments for rare diseases, including a hemophilia blockbuster drug, gastrointestinal disorder, as well as neuroscience where Shire is the treatment leader for ADHD.