Sales force gained through acquisition should enhance company’s earnings.
Shionogi intends to buy Sciele Pharma for approximately $1.1 billion. The acquisition will give the Japanese company a significant U.S.-based marketing team.
Shionogi says that it will pay $31 per share in cash. This represents a 61% premium over Sciele’s last closing price.
Shionogi expects that this transaction will increase its earnings in the fiscal year ending March 2010. The firm has three internally developed Phase III candidates that will benefit from this deal if approved.
“This acquisition will give us a strong platform in the United States to launch products that are currently in the Shionogi and Sciele pipelines,” notes Isao Teshirogi, president and representative director, Shionogi. “Sciele has a well-established sales and marketing team with a proven track record in the United States. Sciele also has expertise in several other key areas including clinical, regulatory, and business development.”
The transaction is expected to close in the fourth quarter of 2008. Upon completion, Sciele will become a wholly owned subsidiary of Shionogi and will continue operations in Atlanta as a standalone business unit.
Shionogi’s planned acquisition of Sciele marks the fourth takeover deal this year between a Japanese pharma company and foreign firm. In December Eisai shelled out $3.9 billion for MGI Pharma. In April Takeda took over Millennium Pharmaceuticals for $8.8 billion, and in June Daiichi-Sankyo inked an agreement to buy Ranbaxy for over $5 billion.
