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Takeda begins tender offer
for ARIAD shares
01-24-2017
EDIT CONNECT
SHARING OPTIONS:
OSAKA, Japan &
CAMBRIDGE, Mass.—On Jan. 19 or 20, depending on their respective time zones, Takeda Pharmaceutical
Co. Ltd. and ARIAD Pharmaceuticals Inc. announced the commencement of the cash tender offer by
Takeda’s wholly owned indirect subsidiary, Kiku Merger Co. Inc., for all outstanding shares of the common stock of ARIAD at $24 per share. The tender
offer is being made in connection with a merger plan which Takeda and ARIAD announced on Jan. 9 and which is expected to total $5.4 billion and be completed
by the end of February (the tender offer itself expires the middle of that month).
Following the purchase of shares in the
tender offer, ARIAD will become an indirect wholly owned subsidiary of Takeda.
“This transaction is a great
outcome for ARIAD shareholders and brings hope to improve the lives of many cancer patients. It has been a pleasure to work with our outstanding management
team and, on behalf of the board of directors, I extend our deepest gratitude to everyone at ARIAD for their unrelenting dedication.” stated Dr.
Alexander J. Denner, chairman of the ARIAD board of directors, adding: “The transaction also underscores the tremendous value that shareholder activism
can create for shareholders, patients and society. While ARIAD’s stock price was collapsing and many investors were abandoning the company, Sarissa
Capital saw a company with important drugs and innovation and stepped in to become one of ARIAD’s largest shareholders. However, many things needed to
be fixed before the value could be realized. With a new board and management team, ARIAD was able to focus on optimal capital allocation and operational
excellence. As a result, the company created meaningful shareholder value and advance the options for those suffering from rare cancers.”
Among the rationales for the deal:
“The acquisition of ARIAD is a unique opportunity that will enable us to positively impact
the lives of more patients worldwide, advance our strategic priorities and generate attractive returns for our shareholders,” said Christophe Weber,
president and CEOof Takeda. “This is a very exciting time for Takeda as we will broaden our hematology portfolio and transform our global solid tumor
franchise through the addition of two innovative targeted therapies. Opportunities to acquire such high-quality, complementary targeted therapies do not come
often, and we are very excited about the potential for this transaction to benefit patients, our shareholders and other stakeholders.”
Paris Panayiotopoulos, president and CEO of ARIAD, added: “We are very pleased to combine with Takeda, which will allow
us to not only accelerate our mission to discover, develop and deliver precision therapies to patients with rare cancers, but also deliver immediate and
meaningful value to our shareholders through a substantial cash premium. This exciting transaction is a testament to the hard work and dedication of
ARIAD’s talented team of employees. We have tremendous respect for Takeda, and I believe our shared commitment to innovation and research-driven
cultures will provide for a smooth transition.”
Zacks Investment Research noted in the days between the
initial announcement and the start of the tender offer that ARIAD had enjoyed a notable boost to its stock price because of the deal, also noting some other
aspects of the company’s progress, including: “Notably, Iclusig was granted orphan drug designation by the FDA for the indication. ARIAD is also
working on expanding Iclusig’s label especially into earlier lines of treatment which will expand the market significantly ... Meanwhile, ARIAD has
entered into many deals for the development and commercialization of Iclusig in different territories. We are also positive on ARIAD’s non-dilutive
synthetic-royalty financing deal with PDL BioPharma. Moreover, ARIAD’s deal with Incyte Corporation will allow it to penetrate the U.S.
market.”
And while Iclusig offers potential in the chronic myeloid leukemia (CML) market, Zacks warns that,
“On the flip side, even though the CML market represents significant potential, Iclusig faces intense competition due to the presence of established
players such as Novartis AG’s Gleevec, Bristol-Myers Squibb Company’s Sprycel and Pfizer Inc.’s Bosulif. All of these drugs are approved
for the treatment of CML in patients who are either resistant or intolerant to prior TKI therapies.”
Analysts at Morningstar noted of the deal after the announcement, “Takeda’s pending acquisition of Ariad Pharmaceuticals looks like a
strong strategic fit with the firm’s oncology portfolio, but we’re wary of the peak sales potential of key pipeline drug brigatinib and are not
planning any major changes to our Takeda fair value estimate.”
Code: E01251702 Back |
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