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Shire hands over its oncology franchise to Servier for $2.4bn

Published on 31/08/18 at 10:43am

Shire has completed the sale of its oncology franchise to French firm Servier for $2.4 billion, handing over the global and regional rights to a slew of pipeline products including acute lymphoblastic leukaemia treatment Oncaspar and colon and small cell lung cancer drug Onivyde.

The completion of the deal comes swiftly after Shire originally announced its intention to sell off the unit in December 2017, confirming Servier as the recipient back in April earlier this year.

Shire’s David Lee, who served the company as its head of its Global Genetic Diseases and Oncology franchises, will take on the position of CEO of Servier’s new commercial US subsidiary, Servier Pharmaceuticals.

It is thought that the sale will enable Shire to reduce its leverage, against a previously announced target of Non GAAP Net Debt to EBITDA of below 2.5x by the end of 2018.

“The closing of this transaction demonstrates the value embedded in our portfolio and our continued focus on executing against our strategic priorities,” remarked  Shire Chief Executive Flemming Ornskov. “I am confident that Servier will continue to bring these important therapies to patients worldwide. I would like to thank David Lee and all those transferring to Servier for their ongoing commitment to meeting the needs of the oncology community, and we wish them continued success.”

Matt Fellows

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