If Baxalta accepts the deal, the acquisition would give the company a lower tax rate because it too would move its headquarters to Ireland, a move that has lately drawn a fair amount of criticism.
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Bloomberg quoted people with knowledge of the matter as saying yesterday that Shire was in advanced talks to acquire Baxalta for about $32 billion in cash and stock, excluding debt. Shire stock was down almost 5% at around 195.
Baxalta has entered into an agreement with Denmark-based Symphogen for exclusive rights to co-develop and commercialize six early-stage immuno-oncology drugs. The offer is reportedly expected to include a cash component of around $20 apiece, with the rest made up of SHPG stock.
Baxalta, which is based in Deerfield, Illinois, was spun off from healthcare company Baxter in July 2015.
In July, Baxalta refused Shires’ advances for a $30 billion all-stock bid that valued the company at $45.23 a share.
Shire (LON:SHP) is closing in on its long-awaited US$32bn potential takeover of USA rival Baxalta, reports on Monday claimed.
Some analysts said Baxalta is in good financial shape and doesn’t need to rush into any deal but is likely to consider all offers. US law requires that tax-free spinoffs not be used as a device to funnel cash to shareholders.
The identity of the mechanisms targeted in the Baxalta/Symphogen alliance have not been divulged, but the Danish company focuses on the development of mixed monoclonal antibodies (MAbs) that address multiple targets in a single drug product.
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“Baxalta’s dedication to delivering transformative therapies and its global commercial presence make it an ideal strategic partner for Symphogen, as we complement Baxalta with R&D competencies within the immuno-oncology area”, said Kirsten Drejer, Ph.D., chief executive officer, Symphogen.
