Baxalta: A Spin-Off That Could Be Revalued Up To 50% Higher
Mike Serebrennik • 23 Comments
Mike Serebrennik • 23 Comments
Tue, Oct. 11, 8:01 AM
- The Fly reports that Shire plc (NASDAQ:SHPG) is closing in on a "multi-billion dollar" take out of biopharmaceutical firm Radius Health (NASDAQ:RDUS). Its lead product candidate is Abaloparatide-SC, under regulatory review for the treatment of osteoporosis.
- In premarket trading, RDUS is up 4% on average volume while SHPG is down 2% on average volume.
Thu, Aug. 18, 8:46 AM
- Raptor Pharmaceuticals (NASDAQ:RPTP) is ahead 16% premarket on robust volume on the buzz that several companies are eyeing the Novato, CA firm, including Shire plc (NASDAQ:SHPG) who alleged has already bid $800M and Retrophin (NASDAQ:RTRX), founded by biotech bad boy Martin Shkreli.
- Raptor focuses its development efforts in rare diseases. Its pipeline includes programs in Huntington's disease, cancer, cystic fibrosis and mitochondrial diseases.
- It currently markets two products: PROCYSBI (cysteamine bitartrate) delayed-release capsules for nephropathic cystinosis and QUINSAIR (aerosolized form of levofloxacin) for the management of chronic pulmonary infections.
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)