Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Tokyo  >  Takeda Pharmaceutical Co Ltd    4502   JP3463000004

TAKEDA PHARMACEUTICAL CO LTD (4502)
My previous session
Most popular
  Report  
SummaryChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsOfficial PublicationsSector newsAnalyst Recommendations

Takeda clears key hurdle as investors back $59 billion Shire deal

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/05/2018 | 04:37pm CET
FILE PHOTO: The logo of Takeda Pharmaceutical Co. is displayed at the company's news conference venue in Tokyo

OSAKA (Reuters) - Takeda Pharmaceutical has won shareholder approval for its $59 billion takeover of London-listed Shire, creating a global powerhouse that has a stronger drugs pipeline but is also saddled with massive debt.

Takeda will be joining the ranks of the world's top 10 drugmakers and gaining expertise in rare diseases through the deal, the biggest overseas acquisition by a Japanese company.

It will also become one of the most indebted. In addition to issuing new shares, the company has secured $30.9 billion in bank loans.

The company's high debt levels were a top concern for Takeda shareholders who gathered at an extraordinary meeting in Osaka, western Japan, although almost 90 percent of them voted to approve the deal as expected.

"I want to keep my Takeda shares into the future, but now I am worried about further declines in the share price," said Satoshi Ito, a 75-year-old shareholder. He abstained from voting.

Separate meetings of Shire shareholders later on Wednesday also secured overwhelming support for the transaction.

Takeda shares have fallen around 25 percent since the drugmaker revealed its interest in the acquisition in March. They closed up 1 percent at 4,240 yen on Wednesday.

Shire shares gained 3.2 percent to 46.95 pounds on relief Takeda's board had won its nine-month battle to persuade shareholders of the merits of the tie-up.

The acquisition is expected to close on Jan. 8. It now only requires sanctioning at a court hearing expected to be held on Jan. 3.

DEBTS, DESCENDANTS AND DIVESTITURES

A small group of Takeda investors, including descendants of the company's founder, had actively opposed the deal.

"We are definitely against this because the financial risks are too great and the expected benefits are quite limited," said Kazuhisa Takeda, a former director of the drugmaker and a member of the founding family, ahead of the meeting.

"I think M&A is quite necessary for Takeda's future but Shire is not the answer."

Chief Executive Christophe Weber has promised to turn the deal profitable by slashing costs. It predicts annual savings of at least $1.4 billion three years after completion, and expects to boost underlying earnings significantly from the first full year after closing.

Takeda also has a plan to sell up to $10 billion worth of non-core assets to pay back debt. Andy Plump, Takeda's global head of R&D, told Reuters that accelerated deleveraging was needed to keep its credit rating at a safe level.

"We have a plan for divestiture that gets us to a place in three to five years that our credit agencies are OK with. Our credit rating is likely to tick down a notch, but still above junk bond status, which is critical for us," he said in an interview.

Analysts have said it may be difficult to integrate the two companies. Toshiba's acquisition of Westinghouse over a decade ago and Japan Post Holdings' $4.9 billion bet on Toll Holdings are widely seen as examples of many Japanese companies having paid high valuations in cross-border deals only to face massive write-downs later.

But they also said Takeda has little choice but to seek growth abroad, with industry pressure to gain access to cutting-edge treatments amid declining revenue from older drugs that must compete with cheaper generics.

Even with the acquisition of Shire, some said Takeda will need to bolster its lineup of experimental therapies to compete in the longer term.

Shire's haemophilia business, for example, is already starting to face strong pressure from a competing drug being marketed by Roche as well as new gene therapies now in development.

"It's crucial whether the drugmaker can reinvest profits from the deal into seeds for developing future drugs," said Kazuaki Hashiguchi, a senior drugs analyst at Daiwa Securities.

"The benefits of the deal will last for a limited time, as no treatments can avoid patent expiration."

(Reporting by Takashi Umekawa, with additional reporting by Julie Steenhuysen in Chicago and Ben Hirschler in London; Editing by Muralikumar Anantharaman/Mark Potter/Susan Fenton)

By Takashi Umekawa

Stocks mentioned in the article
ChangeLast1st jan.
JAPAN POST HOLDINGS CO LTD -0.76% 1302 End-of-day quote.0.15%
ROCHE HOLDING LTD. -0.80% 254.2 Delayed Quote.3.12%
SHIRE 2.51% 4653.85264 Delayed Quote.19.42%
TAKEDA PHARMACEUTICAL CO LTD 7.05% 3980 End-of-day quote.-38.77%
TOSHIBA CORP 0.88% 3450 End-of-day quote.964.81%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on TAKEDA PHARMACEUTICAL CO L
12/13EISAI : GARDP, Eisai and Takeda join forces to identify new antibiotics
AQ
12/13EISAI : GARDP, Eisai and Takeda join forces to identify new antibiotics
AQ
12/12TAKEDA PHARMACEUTICAL : and the New York Academy of Sciences Announce 2019 Innov..
BU
12/12TAKEDA PHARMACEUTICAL : GARDP, Eisai and Takeda announce partnership in the sear..
PU
12/10SHIRE : Elliott Capital Advisors, L.P Elliott Capital -2-
DJ
12/10ELLIOTT CAPITAL ADVISORS, L.P ELLIOT : Form 8.3 - Takeda Pharmaceutical Company ..
DJ
12/07LONDON STOCK EXCHANGE : Oil helps FTSE 100 end turbulent week firmer, but Brexit..
RE
12/07SHIRE : Elliott Capital Advisors, L.P Elliott Capital -2-
DJ
12/07ELLIOTT CAPITAL ADVISORS, L.P ELLIOT : Form 8.3 - Shire Plc
DJ
12/07SHIRE : Elliott Capital Advisors, L.P Elliott Capital -2-
DJ
More news
Financials (JPY)
Sales 2019 1 765 B
EBIT 2019 -
Net income 2019 153 B
Debt 2019 584 B
Yield 2019 4,52%
P/E ratio 2019 22,29
P/E ratio 2020 46,42
EV / Sales 2019 2,12x
EV / Sales 2020 1,03x
Capitalization 3 163 B
Chart TAKEDA PHARMACEUTICAL CO LTD
Duration : Period :
Takeda Pharmaceutical Co Ltd Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends TAKEDA PHARMACEUTICAL CO L
Short TermMid-TermLong Term
TrendsBearishBearishBearish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 11
Average target price 6 087  JPY
Spread / Average Target 53%
EPS Revisions
Managers
NameTitle
Christophe Weber President, CEO & Representative Director
Costa Saroukos Chief Financial Officer
Andrew S. Plump Director, Chief Medical & Scientific Officer
Yasuhiko Yamanaka Managing Director & Head-Globalization
Masato Iwasaki Director & President-Japan Pharma Business Unit
Sector and Competitors
1st jan.Capitalization (M$)
TAKEDA PHARMACEUTICAL CO LTD-38.77%27 840
JOHNSON & JOHNSON5.81%394 519
PFIZER23.05%256 128
NOVARTIS6.84%226 072
ROCHE HOLDING LTD.3.96%222 010
MERCK AND COMPANY40.41%202 855