Biotech Values

[DewDiligence]

SHPG expects buyout suitor, hires Citi to advise:

http://www.reuters.com/article/2014/06/16/us-shire-mergers-idUSKBN0ER29320140616

… Shire has hired investment bank Citi as an adviser, expecting to receive takeover approaches following a wave of deals in the healthcare sector, sources familiar with the matter told Reuters.

Much of the dealmaking has been fueled by U.S. companies seeking lower tax rates abroad. With its tax base in Ireland...and a mid-sized market value of around $35 billion, Shire could be a prime target, analysts and bankers believe.

…[Shire] has already been approached by Botox-maker Allergan months before the U.S. group itself became a takeover target for Valeant, Reuters reported earlier this year. That approach did not lead to serious discussions between the two parties and there are currently no talks with Allergan, one source said.

SHPG's market cap of ~$35B allows almost any US-based suitor to meet the 20% threshold for a “tax inversion” (#msg-101714163).