Baxalta Inc (BXLT) Acquired By Shire for Approximately $32 Billion


It’s been a long time coming, but this morning Shire announced that they will be acquiring the drug maker, Baxalta Inc (NYSE:BXLT) in a deal valued at around $31 billion. The two companies, who had been in talks for over six months, have finally agreed to a deal that they both believe is fair, after Baxalta balked at a much lower offer this last summer .

“This proposed combination allows us to realize our vision of building the leading biotechnology company focused on rare diseases,” Flemming Ornskov, the Shire chief executive, said in a news release. “Together, we will have leadership position in multiple, high-value franchises and become the clear partner of choice in rare diseases.”

The deal will value each Baxalta Inc (NYSE:BXLT) share at $45.57, which will be paid both in cash and in stock. Once combined the companies hope to generate over $20 billion in sales by 2020. Shares are trading up $1.92 or 4.8% in the pre-market this morning.The stock closed at $40.01 during the last trading session. It is up 6.00% since December 12, 2015 and is uptrending. It has outperformed the S&P500 by 10.69%.

Baxalta Incorporated is a biopharmaceutical company. The company has a market cap of $27.15 billion. The Firm develops, makes and markets a portfolio of treatments for hemophilia and other bleeding disorders, immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute medical conditions. It has 23.4 P/E ratio. The Firm also focuses on disease areas, including oncology, as well as technology platforms, including gene therapy and biosimilars.