- Although Baxalta (BXLT) lacks conviction that a merger with Shire (NASDAQ:SHPG) will produce value-creating synergies, some analysts are, predictably, bullish on its benefits.
- The team at Jefferies believes the transaction will create immediate shareholder value while accelerating growth plans for both firms. It projects combined revenues of $20B by 2020 from a global leader in rare diseases. The team appears confident that a merger will happen considering that Shire is willing to go hostile in order to close the deal.
- Cowen's team also likes the marriage, although it admits that Baxalta's portfolio in "not perfect." Nevertheless, it believes that it will continue to grow and have significant duration. It also believes that the combined organization will generate sufficient cash flows that can be used to acquire additional orphan assets, including hematology and oncology.