In a renewed spirit of strengthening its drug portfolio, Japan’s Takeda Pharmaceutical Co Ltd (ADR)(OTCMKTS:TKPYY) says it is ready for a fresh acquisition of cancer drug maker Ariad Pharmaceuticals, Inc.(NASDAQ:ARIA). Takeda will obtain all of the exceptional shares in ARIAD for $24.00 per share in cash, a transaction that has already gained the full endorsement of the boards of directors of both companies. The deal is likely to be finalized in February 2017 but only after meeting customary closing conditions and the required regulatory approvals.
In acknowledging the deal, President and chief executive officer of Takeda, Christophe Weber outlined, “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 shareholder.”
It is an opportunity to acquire high-quality, complementary therapies
The transaction is a significant milestone and at the same time, a great outcome for shareholders of ARIAD and Takeda. The two have previously expressed their passion for discovering, developing and delivering precision therapies to patients with rare cancers. Thus the new move can only be regarded as an achievement but not only to patients also to shareholders and other stakeholders. Shared commitment to innovation and research-driven cultures is of importance and this is exactly what the duo has in common. Both teams have demonstrated hard work and dedication that has necessitated the smooth transition.
The acquisition further brings on board two innovative therapies, Brigatinib and Iclusig, which will help in the expansion of Takeda’s existing oncology portfolio. Apparently, Takeda has been riding in a record of successful oncology product launches. It is expected to apply the same expertise in the launch of brigatinib and to also ensure that it attains its global reach just like a majority of its other products.
Takeda predicts that annual sales from Brigatinib could exceed $1 billion
There are high expectations that Brigatinib, which is an investigational drug product, will deliver strong revenue with peak annual sales potential of over $1 billion. However, this may not come on a silver plate according to MorganStanley MUFG’s pharmaceutical analyst, Shinichiro Muraoka because they must face tough competition.
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