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Shire plc Shire Plc : Shire Announces Sale Of Oncology Business To Servier For $2.4 Billion

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04/16/2018 | 06:55 am


Shire Announces Sale of Oncology Business to Servier for $2.4 Billion

-- Sale of Oncology business unlocks embedded value within Shire's portfolio
and sharpens focus on core areas reinforcing our leadership in rare

-- Oncology business provides Servier S.A.S. with an immediate presence in
the U.S., enhancing its commitment to addressing unmet patient needs in

Dublin, Ireland - April 16, 2018 - Shire plc (LSE: SHP, NASDAQ: SHPG)
the leading global biotechnology company focused on rare diseases
announces today that it has entered into a definitive agreement with
Servier S.A.S. ("Servier") to sell its Oncology business for $2.4
billion. Shire's Oncology business includes in-market products
ONCASPAR(R) (pegaspargase), a component of multi-agent treatment for
acute lymphoblastic leukemia (ALL) and ex-U.S. rights to ONIVYDE(R)
(irinotecan pegylated liposomal formulation), a component of multi-agent
treatment for metastatic pancreatic cancer post gemcitabine-based
therapy. The portfolio also includes Calaspargase Pegol (Cal-PEG),
which is under FDA review for the treatment of ALL and early stage
immuno-oncology pipeline collaborations.

Flemming Ornskov, M.D., M.P.H., Shire Chief Executive Officer,

"This transaction is a key milestone for Shire, demonstrating the clear
value embedded in our portfolio. While the Oncology business has
delivered high growth and profitability, we have concluded that it is
not core to Shire's longer-term strategy. We will continue to evaluate
our portfolio for opportunities to unlock further value and sharpen our
focus on rare disease leadership with selective disposals of
non-strategic assets.

"We are confident that Servier will continue to invest in this business
and our colleagues who are expected to transfer as part of the
transaction in order to meet the needs of cancer patients globally.

"The proceeds from the transaction increase optionality and Shire's
Board will consider returning the proceeds of the sale to shareholders
through a shareholder-approved share buyback after the current offer
period regarding Takeda's possible offer for Shire concludes."

Olivier Laureau, Servier Group President, commented:

"The acquisition of Shire's oncology franchise enables Servier to meet
its strategic ambitions to become a global key player in oncology. As an
essential step in the evolution of the Group, this acquisition allows us
to establish a direct commercial presence in the United States, the
world's leading pharmaceuticals market, and to strengthen our portfolio
of marketed products in the territories where Servier is already
present. Our goal is to bring these treatments to greater numbers of
cancer patients around the world. We thoroughly look forward to
welcoming Shire's oncology teams who will join Servier after the

Transaction details

Under the terms of the agreement, Servier has agreed to acquire Shire's
Oncology business for a total consideration of $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 transaction covers the transfer of Shire's
Oncology business including in-market products ONCASPAR(R)
(pegaspargase), a component of multi-agent treatment for acute
lymphoblastic leukemia (ALL) and ex-U.S. rights to ONIVYDE(R)
(irinotecan pegylated liposomal formulation), a component of multi-agent
treatment for metastatic pancreatic cancer post gemcitabine-based
therapy. The portfolio also includes Calaspargase Pegol (Cal-PEG),
which is under FDA review for the treatment of ALL, and early stage
immuno-oncology pipeline collaborations.

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.

Transaction closing

This transaction constitutes a Class 2 transaction for the purposes of
the U.K. listing rules and, as such, Shire shareholder approval is not
required. The transaction has been approved by the Board of Directors
and is expected to close in the second or third quarter of 2018.

Transaction background

Shire's Board of Directors initiated the potential divestment of the
Oncology business in December 2017. The process, which commenced in
January 2018, identified multiple potential strategic buyers across the
U.S., Europe and Japan.

For further information please contact:

Investor Relations
Christoph Brackmann +41 795 432 359
Sun Kim +1 617 588 8175
Robert Coates +44 203 549 0874

Katie Joyce +1 781 482 2779


Stephen Williams, Deputy Company Secretary, is responsible for arranging
the release of this announcement.

Inside Information

This announcement contains inside information.

About Shire

Shire is the global leader in serving patients with rare diseases. We
strive to develop best-in-class therapies across a core of rare disease
areas including hematology, immunology, genetic diseases, neuroscience,
and internal medicine with growing therapeutic areas in ophthalmics and
oncology. Our diversified capabilities enable us to reach patients in
more than 100 countries who are struggling to live their lives to the

We feel a strong sense of urgency to address unmet medical needs and
work tirelessly to improve people's lives with medicines that have a
meaningful impact on patients and all who support them on their journey.

About Servier

Servier is an international pharmaceutical company governed by a
non-profit foundation, with its headquarters in France (Suresnes). With
a strong international presence in 148 countries and a turnover of 4.152
billion euros in 2017, Servier employs 21,600 people worldwide. Entirely
independent, the Group reinvests 25% of its turnover (excluding generic
drugs) in research and development and uses all its profits for
development. Corporate growth is driven by Servier's constant search for
innovation in five areas of excellence: cardiovascular,
immune-inflammatory and neuropsychiatric diseases, cancers and diabetes,
as well as by its activities in high-quality generic drugs.

Forward-Looking Statements

Statements included herein that are not historical facts, including
without limitation statements concerning future strategy, plans,
objectives, expectations and intentions, projected revenues, the
anticipated timing of clinical trials and approvals for, and the
commercial potential of, inline or pipeline products, are
forward-looking statements. Such forward-looking statements involve a
number of risks and uncertainties and are subject to change at any time.
In the event such risks or uncertainties materialize, Shire's results
could be materially adversely affected. The risks and uncertainties
include, but are not limited to, the following:

-- Shire's products may not be a commercial success;

-- increased pricing pressures and limits on patient access as a result of
governmental regulations and market developments may affect Shire's
future revenues, financial condition and results of operations;

-- Shire depends on third parties to supply certain inputs and services
critical to its operations including certain inputs, services and
ingredients critical to its manufacturing processes. Any disruption to
the supply chain for any of Shire's products may result in Shire being
unable to continue marketing or developing a product or may result in
Shire being unable to do so on a commercially viable basis for some
period of time;

-- the manufacture of Shire's products is subject to extensive oversight by
various regulatory agencies. Regulatory approvals or interventions
associated with changes to manufacturing sites, ingredients or
manufacturing processes could lead to, among other things, significant
delays, an increase in operating costs, lost product sales, an
interruption of research activities or the delay of new product launches;

-- the nature of producing plasma-based therapies may prevent Shire from
timely responding to market forces and effectively managing its
production capacity;

-- Shire has a portfolio of products in various stages of research and
development. The successful development of these products is highly
uncertain and requires significant expenditures and time, and there is no
guarantee that these products will receive regulatory approval;

-- the actions of certain customers could affect Shire's ability to sell or
market products profitably. Fluctuations in buying or distribution
patterns by such customers can adversely affect Shire's revenues,
financial conditions or results of operations;

-- failure to comply with laws and regulations governing the sales and
marketing of its products could materially impact Shire's revenues and

-- Shire's products and product candidates face substantial competition in
the product markets in which it operates, including competition from

-- Shire's patented products are subject to significant competition from

-- adverse outcomes in legal matters, tax audits and other disputes,
including Shire's ability to enforce and defend patents and other
intellectual property rights required for its business, could have a
material adverse effect on the Shire's revenues, financial condition or

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