Acquisitions · Pharmaceuticals (oncology)
Takeda buys US cancer drug maker ARIAD for about $5.2 billion
- Buyer
- Takeda Pharmaceutical (Tokyo)
- Target
- ARIAD Pharmaceuticals, Cambridge, Massachusetts
- Value
- About $5.2B ($24.00 a share in cash); ¥627.8B
- Status
- Completed on February 16, 2017.
- Date
- 2017-01-09
Takeda Pharmaceutical agreed to buy ARIAD Pharmaceuticals of Cambridge, Massachusetts, for $24.00 a share in cash, about $5.2 billion in total. The purchase was made through a tender offer by its US unit, Takeda Pharmaceuticals USA. ARIAD sells the leukemia drug Iclusig and was developing the lung cancer drug brigatinib.
Why it matters
The deal strengthens Takeda's cancer drug lineup with a marketed product and a late-stage candidate, adding to its US oncology base in Cambridge.
Deal terms
The $24.00 cash price was about 75% above ARIAD's previous closing price, according to Reuters, and ARIAD shares rose almost to the offer price in premarket trading. Reuters calculated the equity value at about $4.66 billion. Takeda planned to fund the deal with about $4 billion in new debt plus cash on hand, and it expected the deal to add to earnings in 2018.
ARIAD's drugs
Iclusig, a treatment for leukemia, was expected to bring in $170 million to $180 million in sales in 2016; it had drawn criticism in 2016 for steep price increases. Brigatinib, a lung cancer drug, was awaiting a US Food and Drug Administration decision expected by April 29, 2017. ARIAD carried about $522 million in long-term debt as of September 30, 2016.
Sources
Kakehashi M&A News home
