Shire Share Discussion Threads

[philanderer] 17/4/2018 20:48

Cambridge, Ma. - April 17, 2018

- Shire plc (LSE: SHP, NASDAQ: SHPG), the global biotechnology leader in rare disease, today announced the U.S. Food and Drug Administration (FDA) has approved VONVENDI [von Willebrand factor (recombinant)], a recombinant von Willebrand factor (rVWF) treatment for perioperative management of bleeding in adults (age 18 and older) with von Willebrand disease (VWD).1 VONVENDI is also indicated for on-demand treatment and control of bleeding episodes, and it is the first and only recombinant treatment for adults living with VWD, the most common inherited bleeding disorder.

[philanderer] 17/4/2018 18:46

I can't even see a bid coming ;-)

[mbmiah] 17/4/2018 17:14

I can't see a bidding war as that would only spike the share price

[romeike] 17/4/2018 16:30

The sale of Shire’s oncology segment may bring down the acquisition cost for Takeda - no but it might help make Shire more affordable for them.

Not long left to find out if Takeda is just some millennial viewing a house they could never afford to buy.

[philanderer] 17/4/2018 14:51

Although investors cheered the news of a potential buyout of Shire by Takeda, with the sale of the oncology segment, Takeda is expected to reconsider its decision before making an offer. Oncology was one of the three core therapeutic areas which Takeda was looking to strengthen through Shire’s acquisition.

However, a deal between Takeda and Shire is still expected to bring strategic synergies. Takeda acquired ARIAD Pharmaceuticals last year in a bid to strengthen and diversify its oncology business. The sale of Shire’s oncology segment may bring down the acquisition cost for Takeda.

The investor community also believes that a formal takeover offer from Takeda may also trigger bids from other companies, which previously showed interest in Shire including AbbVie and Pfizer.

Demand for companies with rare disease drugs in their portfolio or pipeline candidates are rising. This is evident from the billion dollar deals signed this year. Novartis is acquiring AveXis for $8.7 billion while Sanofi has spent nearly $16 billion to boost its rare blood disorder pipeline.

[demo trader] 17/4/2018 13:13

Another one to keep an eye on..............WPP

[philanderer] 17/4/2018 12:08

17th april RBC outperform -
17th april Deutsche buy -

reiterations

[philanderer] 17/4/2018 09:52

Shire is undervalued, says Jefferies


The sale of Shire’s (SHP) oncology business for $2.4 billion (£1.7 billion) shows the stock is undervalued, and should boost its negotiating power with Japanese Takeda which is bidding for the pharma company, says Jefferies.

Analyst Peter Welford retained his ‘buy’ recommendation and target price of £41 on the shares, which fell 1.1% to £35.67 yesterday.

‘Shire’s planned sale of its oncology business to Servier for $2.4 billion again underpins our thesis that the stock is undervalued, with proceeds earmarked to ‘increase optionality’, and the board is considering a buyback,’ he said.

‘The cash consideration is just above our $2.3 billion net present value, representing 9.2x 2017 sales.

‘The deal should also boost Shire’s negotiating position on asking price in the current offer period with Takeda.’

[swedeee] 16/4/2018 21:59

current revenue does not reflect drugs in pipeline

[karateboy] 16/4/2018 21:52

If 2% of SHP revenue worth $2.4b how much 100% of revenue worth? Well $120b!! Somebody should email this calculation to Takeda for consideration!!

[philanderer] 16/4/2018 21:21

'Shire's oncology exit weighs on potential Takeda bid'


Takeda has until April 25 to decide whether it's putting in a formal bid for Shire.

The company declined to comment on how Shire's latest sale will affect that decision. Others, however, reasoned that it's unlikely to scare the suitor off.

"[I]t is difficult for us to believe that selling 2% of Shire's revenues — whether it was strategic to Takeda or not — would alter a contemplated transaction/approach by Takeda of this magnitude. Either standalone, or acquired, we continue to believe SHPG shares are undervalued," Cowen & Co. analyst Ken Cacciatore wrote in an April 16 note.

[philanderer] 16/4/2018 21:07

"Shire's $2.4 Billion Cancer-Unit Sale Sweetens Takeda Appeal"


++ Divestment, share buyback may both increase attractiveness

Shire Plc agreed to sell its cancer unit to France’s Servier SAS for $2.4 billion, tightening the U.S.-based drugmaker’s focus on rare diseases and potentially making it more attractive to Takeda Pharmaceutical Co. as it considers a bid.

The sale could make a Shire deal slightly more affordable for Takeda, which spent $4.7 billion to acquire cancer drug maker Ariad Pharmaceuticals last year. Shire’s decision to buy back shares may also indicate a positive view of the bid, since increasing shareholder returns would make it easier to get approval for a deal, Kazuyoshi Saito, a senior analyst for Iwai Cosmo Securities Co.

“I have an impression that Takeda and Shire are heading in the same direction,” Saito said in a telephone interview.

[inki] 16/4/2018 16:31

Share buy backs achieve a simple way to improve the EPS despite not returning cash to existing shareholders. This management have no regard for shareholders - hence the previous approach of - shareholders will have to wait -

Whatever approach was made in December to market potential assets, the deal has been done to attempt to frustrate a buyer of the whole, by reducing assets and possibly leaving the same debt (after buy backs) hence a higher ratio of gearing

[arja] 16/4/2018 14:43

quite a fall today after early rise ! I do not follow this one but was the fall news based ? I do not think so .

[philanderer] 16/4/2018 14:42

£ heading north 1.4322

[romeike] 16/4/2018 14:17

Share buy backs resulting from this could easily occur well before a take over is concluded. Even if a bid is accepted on a friendly basis it will take moths to conclude the transaction. I would not be surprised to see Shire advance NBU spin off plans after Q1 results.

[scfc1] 16/4/2018 14:10

I started reading the article with interest and then got to the “...Shire is around the same size in value terms as Takeda at £33.3bn...R21; - some great research there, not!

[philanderer] 16/4/2018 14:06

'Does Shire’s oncology sale mean Takeda may no longer be interested in making a takeover offer?'

[scfc1] 16/4/2018 14:01

This may have some limited impact on any potential Takeda deal, but if anything, it makes it less likely...they are selling one of the (albeit smaller) business areas that was stated as driving the rationale for a deal. They maybe swapping an asset for cash but an asset Takeda publicly said they wanted and was a reason for their 2025 vision.

As I’ve said before the idea that they will be more swayed to buy it now because of this so it could theoretically have a slightly lower debt burden is a non-starter imo. Also FO was noted as saying £41+ was undervaluing Shire last summer so any bid even near a level Takeda can seemingly afford will be seen as hostile takeover bid by the BOD. I personally don’t think it will even get that far. Only a few days and then the speculation will be over...

[blueclyde] 16/4/2018 13:28

It should theoretically greatly increase the chances of a take over bid coming through pretty quickly so that the acquirer can get their hands on that cash for themselves to in part help fund the take over before it is war marked for something else or paid away to share holders.

[romeike] 16/4/2018 12:52

Yes, precisely. A poison pill would more likely involve making an acquisition - this action, if anything, makes it easier for Takeda to acquire Shire and either way is a good deal for shareholders as it is an example of the kind of value return FO hinted at strongly in the last investor call - disposing of assets that sit between the two core divisions and returning that value to shareholders either through buy backs or through the dividend.

It shows that analysts statements about nothing to see here in the short term are badly wrong.

[philanderer] 16/4/2018 12:14

Yes, I would have thought slightly helpful for Takeda

[soundbuy] 16/4/2018 10:18

'a deterrent for Takeda' ????

Current bid/offer telling a different story........