Servier's Shire Oncology Buy Gives Base For US Expansion

With the $2.4bn acquisition of Shire's oncology assets, including Oncaspar and Onivyde, the French drug maker has laid down a marker to become a key player in cancer and sees the US in particular as the land of opportunity.

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France's Servier wants to increase its US presence • Source: Shutterstock

While many observers focused on the effect the sale of its oncology business to Servier SA will have on Shire PLC, which is expecting a takeover offer from Takeda Pharmaceutical Co. Ltd., the deal is also a significant one for the privately held French group and its hopes to become a major player in cancer on both sides of the Atlantic. (Also see "Shire's Suitors: Takeda, Pfizer Seen As Likely To Bid; Amgen Could Enter Fray" - Scrip, 6 April, 2018.)

Servier is paying $2.4bn in cash for the unit, a price that is a little higher than analysts at Deutsche Bank and Jefferies had expected – the brokers had net present value (NPV) estimates of $2.1bn and $2.3bn respectively

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