Actelion Hits All Time High on Rumored $18.9 Billion Shire Bid
June 8, 2015
By Alex Keown, BioSpace.com Breaking News Staff
ZURICH – Shares in Switzerland-based Actelion Ltd. , Europe’s largest biotechnology company, soared Monday after reports that U.K.-based Shire PLC was considering a $19 billion takeover bid in order to boost its rare disease pipeline, Reuters reported this morning.
In January Shire greed to buy U.S. group NPS Pharmaceuticals, Inc. for $5.2 billion Shire has been involved with more than $250 billion worth of acquisitions this year, Reuters noted. A $50 billion deal between Shire and AbbVie to merge fell apart last year after the U.S. government changed the tax rules on companies relocating their corporate headquarters overseas to receive tax breaks. In 2011 Shire had also been in talks with Cubist Pharmaceuticals, Inc. for a possible acquisition, but that never transpired. Cubist was acquired by Merck & Co. earlier this year.
Flemming Ornskov, Shire’s chief executive officer, told Bloomberg Business that growth through acquisition was a way to make the company a leader in the biotech industry.
Acquiring Actelion would not only give Shire an additional growth engine for rare diseases, but the U.K. company could also benefit from Actelion’s rugs for Gaucher and Fabry disease. Actelion is the maker of a number of drugs to treat lung disorders, including Tracleer, which was at the center of Actelion’s strong fiscal reports for 2014, Opsumit, which hit the market in 2013 and Uptravi, which is awaiting regulatory approval in the United States.
The Sunday Times of Britain reported Shire approached Actelion several weeks ago with a “soft offer” of 160 francs per share, or nearly $19 billion, which was rejected. The per-share offer was higher than the Friday’s closing price of 132 francs per share, Reuters reported. Actelion’s stock was up more than 13.5 points this morning, trading at 152.73 per share. In contrast, Shire’s stock was down more than 8 points this morning, trading at 243.43 per share.
Neither Shire nor Actelion commented on the rumor, Reuters noted.
A year ago Actelion’s Chief Executive Officer Jean-Paul Clozel told Bloomberg that a successful drug-development record including positive clinical reports from the experimental drug selexipag for pulmonary arterial hypertension, earned the company the right to stay independent. Selexipag is the third drug from Actelion to treat pulmonary arterial hypertension (PAH), a progressively worsening condition characterized by abnormally high blood pressure in the arteries of the lungs. The cause is unknown and the disease has no cure.
Last year Reuters reported Actelion Ltd. was looking for possible acquisitions to expand its portfolio, but wanted to be disciplined when it came to how much money it was willing to spend.
Earlier this year the U.S. Food and Drug Administration (FDA) granted Fast Track designation for Shire’s investigational SHP609, aimed at the treatment of neurocognitive decline associated with Hunter syndrome. This drug formula is being developed for use with Shire’s currently approved treatment for Hunter syndrome, Elaprase, which is administered intravenously and does not cross the blood-brain barrier in clinically relevant amounts.
When Will Pfizer's Breakup Happen?
Speculation that the revamping of Pfizer Inc. ’s internal business structure could happen as soon as this year has biotech wondering just when this Big Pharma company could see changes.
Last week an analyst with J.P. Morgan said he thinks there will be a much faster timeline than most of Wall Street had predicted for Pfizer’s stated mission to refocus its efforts on new medicines.
Pfizer initially announced in 2012 that it would be shedding units that were non-essential to that goal. It then promptly sold its nutrition silo to Nestle for $11.85 billion, which was rapidly accompanied by a public spin-off of its animal health business for $2.2 billion.
“While a Pfizer break-up would likely be a 2017 event, we see potential catalysts in 2015-2016," said Chris Schott, an analyst at J.P. Morgan. "Three years of audited financial statements (2014-2016) are required before any part of Pfizer can be spun off, and we also see 2017 as an attractive time for action as investors see Pfizer’s innovative pipeline clearly contributing to growth and the established business having transitioned to a more stable profile."
BioSpace wants to know what you think: Will Pfizer be a changed company by the end of 2015?