Baxalta: A Spin-Off That Could Be Revalued Up To 50% Higher
Mike Serebrennik • 23 Comments
Mike Serebrennik • 23 Comments
I Was Inverted With Shire
Chris DeMuth Jr. • 49 Comments
Chris DeMuth Jr. • 49 Comments
ViroPharma: Cinryze Shining The Pharma Stock
Fri, Jun. 3, 7:03 AM
- Shire plc (NASDAQ:SHPG) completes its merger with Baxalta (NYSE:BXLT). The combined company has over 22,000 employees in more than 100 countries and is expected to deliver over $20B in revenue by 2020. The transaction should be accretive to non-GAAP EPS in 2017.
- Baxalta shareholders received $18 in cash plus 0.1482 of a Shire ADS for each Baxalta share.
- Read now A Deep Dive Into Shire's Business
Fri, May 27, 9:27 AM
- As expected, Shire plc (NASDAQ:SHPG) shareholders voted overwhelmingly in favor of the merger with Baxalta (NYSE:BXLT). At a special meeting, 93.8% of the votes cast, representing 75.5% of Shire's outstanding shares, backed the deal.
- The positive vote from Baxalta's side was also overwhelmingly in favor with 98.9% of shares backing the marriage.
- Previously: Shire takes out Baxalta for $32B (Jan. 11)
Fri, Apr. 15, 3:37 AM
- Baxalta (NYSE:BXLT) shares fell more than 5% in extended trading after the company announced a special shareholders meeting on May 27 to vote on its merger with Shire (NASDAQ:SHPG).
- Baxalta would benefit from a lower tax rate if taken over by Shire, and the enlarged company could generate $20B in sales by 2020, with as many as 30 new drugs to launch over five years.
- Update: On May 23, preliminary results show that holders of 6.1% of BXLT shares (41,803,203) elected to receive Shire ordinary shares instead of Shire ADSs. Shires' offer for Baxalta is $18 in cash plus either 0.1482 of a Shire ADS (1 ADS = three ordinary shares) or 0.4446 of a Shire ordinary share.
Wed, Apr. 6, 3:08 PM
Tue, Apr. 5, 2:50 PM
- The Treasury Department yesterday evening put its foot down on tax inversions, all but putting an end to the Pfizer/Allergan deal, with Allergan now lower by 15% on the session.
- Other prospective inversion candidates are mulling the news. Among them:
- Johnson Controls (JCI -2%), Tyco (TYC -2.6%), Progressive Waste (BIN -5%), Waste Connections (WCN -4.2%), IHS (IHS -2%), Markit (MRKT -2.4%), Baxalta (BXLT -6.4%), Shire (SHPG -2.9%)
- Now read: Progressive Waste Solutions Merger With Waste Connections Creates Significant Value And Scale
Fri, Jan. 22, 9:47 AM
- Shire plc (SHPG +3.1%) completes its $5.9B acquisition of (DYAX), whose shareholders will receive $37.30 per share in cash plus potentially $4 more via a non-tradable contingent value right (CVR) related to the regulatory clearance of DX-2930 for the treatment of hereditary angioedema (HAE). A Phase 3 study should be completed in December.
- Previously: Shire buys Dyax for $5.9B in cash (Nov. 2, 2015)
Wed, Jan. 20, 3:46 PM
Mon, Jan. 11, 7:36 AM
- It's official. Shire plc (NASDAQ:SHPG) acquires Baxalta (NYSE:BXLT) for $45.57 per share ($32B). Under the terms of the deal, Baxalta shareholders will receive $18 per share in cash plus 0.1482 Shire ADS. The deal represents a 13.9% premium to Baxalta's closing price on Friday. The transaction should close by mid-year.
- BXLT is up 4% premarket while SHPG is up 1%.
- SA Contributor Chris DeMuth, whose Rangeley Capital has a significant stake in Baxalta, says, "We support the transaction and think it will be a successful deal for both companies." Rangeley's Andrew Walker adds, "I think the deal makes plenty of sense. [It] is full and fair and there are substantial synergies to be had from cost cutting and tax improvement. Both sets of shareholders should be very happy."
- Previously: Shire to announce Baxalta deal as early as Monday (Jan. 7)
- Previously: Shire sweetens Baxalta bid, deal imminent (Dec. 22, 2015)
Thu, Jan. 7, 3:35 PM
Mon, Jan. 4, 4:05 AM
- Shire (NASDAQ:SHPG) is in advanced talks to acquire Baxalta (NYSE:BXLT) for $46.50-$48 per share, or about $32B in cash and stock, excluding debt, Bloomberg reports.
- Final details of the transaction are still being negotiated, but the two drugmakers are likely to announce a deal this week.
- Baxalta would benefit from a lower tax rate if taken over by Shire, and the enlarged company would generate $20B in sales by 2020, with as many as 30 new drugs to launch over five years.
- SHPG -1.5% premarket, BXLT +9% premarket.
- Previously: Shire sweetens Baxalta bid, deal imminent (Dec. 22 2015)
Dec. 22, 2015, 4:23 PM
- According to Reuters, Shire Plc (NASDAQ:SHPG) has made a sweetened offer for Baxalta (NYSE:BXLT) that values it in line with Baxalta's expectations, making a deal possible in the next few weeks. The new offer includes enough cash that raises the value of the bid to over $30B.
- Previously: Shire plans to sweeten Baxalta bid by £8B (Dec. 20)
Dec. 20, 2015, 5:36 PM
- As much as 40% of Shire's (NASDAQ:SHPG) rumored renewed bid for Baxalta (NYSE:BXLT) could be in cash.
- £8B would bring the total value of a deal to £20B.
- Shire hopes to complete the deal by mid-January.
- In August, Shire made an all-stock offer of £19.2B for Baxalta. Baxalta said the price was “nowhere near” the value the board was seeking. Since then, its shares fell from above $40/share to $31, but have since rebounded to $38.
- Source: Sunday Times
Dec. 15, 2015, 8:32 AM
- Intercept Pharmaceuticals (NASDAQ:ICPT) is up 9% premarket on light volume, apparently stoked by rumors of a possible bid by Shire plc (NASDAQ:SHPG).
- Shire is supposedly close to a deal to acquire Baxalta (NYSE:BXLT) for at least $30B in cash and stock. It recently bought (NASDAQ:DYAX) for $5.9B.
- Previously: Bloomberg: Shire and Baxalta getting closer to deal (Dec. 11)
- Previously: Shire buys Dyax for $5.9B in cash (Nov. 2)
Dec. 11, 2015, 3:24 PM
- The new offer could include a sizable cash component, reports Bloomberg, noting Baxalta (BXLT -0.8%) rejected Shire's (SHPG -2.1%) previous $30B all-stock bid.
- That previous bid was 0.1687 shares in Shire ADRs for each share of Baxalta, valuing the target company at $45.23 (it's currently $37.45).
- The combined company would generate $20B in sales by 2020, with as many as 30 new drugs launching over the next five years. There's the inversion angle, of course, and Baxalta projects a tax rate of 23% next year. The combined firm would have an effective tax rate of 16-17%, says Shire.
- Previously: Reuters: Shire prepping new bid for Baxalta (Nov. 24)
Dec. 2, 2015, 5:40 PM
- Dyax (NASDAQ:DYAX) is up 12.1% after hours, and ADRs for Shire (NASDAQ:SHPG) are up 1.5%, as the Hart-Scott-Rodino antitrust waiting period for Shire's acquisition of Dyax (DYAX) was ended today by the FTC.
- Shire had entered into an agreement to buy Dyax for about $5.9B, or $37.30/share in cash. Dyax was most recently trading at $37.40 after hours.
- In the deal, Dyax's shareholders could get additional value beyond the cash in a non-tradable contingent value right worth $4/share, depending on the approval of DX-2930.
- Previously: Shire buys Dyax for $5.9B in cash (Nov. 02 2015)
Nov. 24, 2015, 4:19 PM
- It was about four months ago when Baxalta (NYSE:BXLT) rejected an unsolicited $30B offer from Shire (NASDAQ:SHPG), and now Reuters reports a new proposal is being prepped.
- The earlier bid on Aug. 3 valued Baxalta at $45.23 per share, but the stock has dropped since, trading today at $33.08 prior to this news being leaked late in the session.
- Shire, of course, three weeks ago agreed to purchase Dyax for $5.9B, but management said that wouldn't stand in the way of another run at Baxalta.
- "He's never given up," says a source, talking about CEO Flemming Ornskov's designs on Baxalta.
- BXLT jumped late in the session after the news hit, closing higher by 6.4% to $35.66. Shire dipped 1.9% to $209.
Shire Plc is a biopharmaceutical company, which focuses on developing and marketing innovative medicines for patients with rare diseases and other conditions. It engaged in the research, development, licensing, manufacturing, marketing, distribution and sale of innovative specialist medicines to... More
Industry: Drug Manufacturers - Major
Country: United Kingdom
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