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

Shire (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. to sell its Oncology business for $2.4 billion.  Shire’s Oncology business includes in-market products ONCASPAR® (pegaspargase), a component of multi-agent treatment for acute lymphoblastic leukemia (ALL) and ex-U.S. rights to ONIVYDE® (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.

As quoted in the press release:

Flemming Ornskov, M.D., M.P.H., Shire Chief Executive Officer, commented: “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.”

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