Drugmaker Shire is hoping to acquire Baxalta, the spin-off of Baxter International. The company is offering $30 billion to form the leading global specialist in rare diseases.
Shire said its unsolicited offer of 0.1687 Shire American depositary receipts per share valued each Baxalta share at $45.23.
Upon news of the acquisition offer shares in Baxalta jumped 19 percent to $39.50 in pre-market trading.
The Illinois-based company develops biotech treatments for rare blood conditions, cancers and immune system disorders. It currently employs 16,000 people. The company had proforma revenue of $6 billion in 2014.
The all-share offer represents a 36 percent increase over Baxalta’s stock price on August 3. The offer would give U.S. shareholders a 37 percent share of the combined group.
Shire Chief Executive Flemming Ornskov said he had gone public with its plan after Baxalta’s board declined to engage in substantive discussions.
“We believe the proposed combination of Shire and Baxalta would be strategically and financially attractive for both of our companies, accelerating our respective growth ambitions and creating the leading global biotech company in rare diseases,” he said.
“It is our strong preference to immediately enter into a negotiated transaction to explore the full potential of the proposed combination and finalize the terms of an agreement.”
Shares in Shire were down around 4 percent at the time of the announcement.
On Monday Shire agreed to purchase private eye drug company Foresight Biotherapeutics for $300 million. The company has a strong history of acquisitions that include New River Pharmaceuticals for $2.3 billion in 2007, Viropharma in 2013 for $4.2 billion and NPS Pharma for $5.2 billion in 2012.
AbbiVie attempted and failed to purchase Shire for $50 billion. That merger failed and Shire shares soared on the strength of its incredibly expensive niche medications.
The acquisition offer with Baxalta comes at a time when many of the country’s biggest healthcare insurers and drug makers are issuing merger offers in an increasing attempt to find new profits in the age of the Affordable Healthcare Act.