Shire share price: Takeda proposes sale of UK group’s prospective drug

Move comes as companies look to gain EU approval for merger

Shire share price: Takeda proposes sale of UK group’s prospective drug

Japan’s Takeda Pharmaceutical has proposed the sale of Shire’s (LON:SHP) prospective treatment for inflammatory bowel disease as it looks to gain the European Commission’s approval for its proposed acquisition of the UK rare disease specialist. The news comes after Japan recently approved the $62-billion tie-up.

Shire’s share price has jumped in London this morning, having gained 2.53 percent to 4,511.50p as of 10:33 BST. The stock is outperforming the broader market rally, which has seen the benchmark FTSE 100 index add 1.44 percent to 7,039.35 points so far today. The group’s shares have added a little over a quarter to their value over the past year, as compared with about a 6.4-percent dip in the Footsie.

Proposed Shire drug sale

Takeda confirmed in a statement on Friday that it was in discussions with the European Commission over  the future potential overlap in the area of inflammatory bowel disease between the Japanese group’s marketed product Entyvio and Shire’s pipeline compound SHP647, which is currently in late-stage clinical trials. Takeda said that it was committed to its own treatment and that it had proposed a remedy of a potential divestment of SHP647 and certain associated rights.

“Takeda confirms that there are no discussions with the EC regarding any other marketed products or assets in the pipeline,” the Japanese group noted, adding that it did not expect the discussions with the Commission to result in a delay to its previously announced timetable for completion of Shire’s acquisition.

Analysts on FTSE 100 group

UBS reaffirmed Shire as a ‘neutral’ on Friday, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of  4,725.30p.

As of 10:41 GMT, Monday, 29 October, Shire PLC share price is 4,510.50p.

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