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Takeda to acquire Ariad in $5.2 billion deal

pharmafile | January 9, 2017 | News story | Manufacturing and Production, Sales and Marketing Ariad, Takeda 

Takeda has acquired US drug maker, Ariad Pharmaceuticals, in a deal worth $5.2 billion. Takeda has been looking to bolster its business with acquisitions for some time and has settled upon Ariad. There had previously been rumours of Takeda looking to takeover some of Valeant’s assets or perhaps acquire the entire company, but negotiations fell through late in November.

Takeda will primarily bolster its oncology pipeline with the rights to Iclusig, a drug to treat chronic myeloid leukaemia, and the experimental lung cancer drug brigatinib. Ariad has already applied to the FDA for approval of the drug and is awaiting the FDA’s decision that is expected by 29 April. Iclusig is expected to generated sales of between $170 million to $180 million.

Takeda will take on $4 billion in debt to acquire Ariad, as well taking on $522 million of Ariad’s long-term debt. Araid’s stock reacted by jumping 74.7% on the news.

“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 chief executive officer of 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 chief executive officer of Ariad, said, “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.”

Ben Hargreaves


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