AbbVie has released a series of documents to Shire understand why they should accept their offer of $46.5 billion.
AbbVie want to takeover Ireland based biopharma Shire in a specialist deal that could help Shire’s long term growth prospects.
To make a case why Shire would benefit from a takeover, AbbVie have released a series of documents to investors and analysts explaining why this new combination would work for both companies.
AbbVie have recently had a third bid turned down with an offer of £46.26 not tempting Shire to budge. Shire still feel that all offers have undervalued the company. This is further backed up by Shire winning a patent on in its hyper activity drug Vyvanse which would stop competitors from creating generic variants of the drug. Five other companies were looking to do this and now will need to appeal the ruling to have any say in the outcome.
This potential merger could create a large diversified biopharmaceutical company with multiple leading franchises and significant financial capabilities for future acquisitions which would only make it stronger. AbbVie’s message to the Shire shareholders is that they are looking for a win win situation.
“AbbVie is offering Shire shareholders compelling immediate value with significant future upside potential from ownership in ‘new AbbVie’ that AbbVie expects will create long-term value,” it insists.
Given AbbVie’s global resources and highly experienced management team as well as a strong track record of shareholder value creation, the US firm believes it has a very compelling case.
However AbbVie do try to paint over the fact that working with Shire’s portfolio of rare disease and ADHD treatments would mean AbbVie wouldn’t have such a high reliance on their drug Humira. Humira pulled in 10.7 billion in sales last year and made up 57% of AbbVie’s total sales.
The deal would “accelerate growth of both companies through multiple catalysts”, says AbbVie, making Shire’s pipeline and products “more successful than its standalone prospects”.
The US company believes that a combined entity could gain “incremental sustainable leadership positions within high value market segments of significant unmet need”, including immunology, rare diseases, neuroscience, metabolic diseases, liver disease and cancer.
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