Ireland-based Shire has completed its previously announced $2.4bn sale its Oncology business to French pharmaceutical firm Servier.
The franchise includes the global rights to ONCASPAR and ex-US and ex-Taiwan rights to ONIVYDE, as well as Oncology pipeline assets. David Lee, who was previously the head of Shire’s Global Genetic Diseases and Oncology franchises, will continue with Servier as CEO of its new US commercial subsidiary, Servier Pharmaceuticals.
Shire CEO Flemming Ornskov said: “The closing of this transaction demonstrates the value embedded in our portfolio and our continued focus on executing against our strategic priorities.
“I am confident that Servier will continue to bring these important therapies to patients worldwide. I would like to thank David Lee and all those transferring to Servier for their ongoing commitment to meeting the needs of the oncology community, and we wish them continued success.”
The Oncology sale proceeds are expected to enable Shire to further reduce its leverage. Shire previously announced a leverage target of Non GAAP Net Debt to EBITDA of below 2.5x by the end of 2018.
Shire will update its financial guidance, including the impact of the Oncology sale, as part of the Q3 earnings announcement later this year.
Shire first announced its plans to sell its Oncology franchise to Servier on April 16, 2018.
This transaction constitutes a Class 2 transaction for the purposes of the U.K. Listing Rules and, as such, Shire shareholder approval was not required. The transaction was approved by the Board of Directors; the Board initiated the potential sale of the Oncology franchise in December 2017.
Source: Company Press Release.