Pharmaceutical Processing World

  • Home
  • Regulatory
    • Recalls
  • Pharmaceutical Processing
  • Facility
  • Supply Chain
  • Equipment and Materials
  • Contract Manufacturing
  • Advertise
  • SUBSCRIBE

Takeover Target Shire Promises Strong Growth

By Pharmaceutical Processing | June 24, 2014

LONDON (AP) — Takeover target Shire on Monday highlighted its potential as a standalone drugmaker, offering investors a rosy projection of its earnings potential that it believes is not reflected in the acquisition proposal made by U.S.-based rival AbbVie.

Chief Executive Flemming Ornskov told analysts that Shire PLC should remain independent, and that it expects to more than double its 2013 annual product sales to $10 billion by 2020.

The company, which is known for its rare disease drugs, has rejected an unsolicited 27 billion-pound ($46.2 billion) offer from AbbVie Inc., arguing it fundamentally undervalues the company. It also expressed concern that AbbVie was interested in the move for tax reasons.

Shire has so far rejected three overtures.

The offer comes at a time of wheeling and dealing in the pharmaceutical industry, as drugmakers look to grow or eliminate noncore assets while focusing on strengths.

Alex Arfaei, a pharmaceutical analyst for BMO Nesbitt Burns Inc., said acquiring Shire would “meaningfully improve” AbbVie’s business.

“Overall, we were encouraged by the tone of the Shire call, and believe that a friendly offer could be possible,” Arfaei wrote. “We believe that AbbVie does have room to meaningfully sweeten its offer.”

He estimated that AbbVie could increase the cash component of its offer from 20.44 pounds per share to 34 pounds, which would value Shire at just under 60 pounds per share, or $60 billion.

Related Articles Read More >

This is a photo of the Fujifilm Diosynth Biotechnologies plant under construction in Holly Springs, North Carolina.
Fujifilm, Regeneron ink $3B U.S. manufacturing agreement
This is the logo of Johnson & Johnson.
J&J breaks ground on $2B manufacturing facility in North Carolina
sherwin-williams-pharma-facility (1)
Sherwin-Williams expands flooring solutions for pharma facilities
PHARMAP 2025: Pharma leaders converge in Berlin for fifth anniversary summit
“ppw
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest news, technologies, and developments in Pharmaceutical Processing.

DeviceTalks Tuesdays

DeviceTalks Tuesdays

MEDTECH 100 INDEX

Medtech 100 logo
Market Summary > Current Price
The MedTech 100 is a financial index calculated using the BIG100 companies covered in Medical Design and Outsourcing.
Pharmaceutical Processing World
  • Subscribe to our E-Newsletter
  • Contact Us
  • About Us
  • R&D World
  • Drug Delivery Business News
  • Drug Discovery & Development
  • DeviceTalks
  • MassDevice
  • Medical Design & Outsourcing
  • MEDICAL TUBING + EXTRUSION
  • Medical Design Sourcing
  • Medtech100 Index
  • R&D 100 Awards

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy | Advertising | About Us

Search Pharmaceutical Processing World

  • Home
  • Regulatory
    • Recalls
  • Pharmaceutical Processing
  • Facility
  • Supply Chain
  • Equipment and Materials
  • Contract Manufacturing
  • Advertise
  • SUBSCRIBE