Servier’s €2.4 Billion Acquisition of Shire Oncology Business

Baker McKenzie and Davis Polk advised on the deal

Shire plc (LSE: SHP, NASDAQ: SHPG) has entered into a definitive agreement with Servier S.A.S. (“Servier”) to sell its Oncology business for $2.4 billion. Shire’s Oncology business includes in-market products ONCASPAR® (pegaspargase), a component of multi-agent treatment for acute lymphoblastic leukemia (ALL) and ex-U.S. rights to ONIVYDE® (irinotecan pegylated liposomal formulation), a component of multi-agent treatment for metastatic pancreatic cancer post gemcitabine-based therapy.

The portfolio also includes Calaspargase Pegol (Cal-PEG), which is under FDA review for the treatment of ALL and early stage immuno-oncology pipeline collaborations.

Under the terms of the agreement, Servier has agreed to acquire Shire’s Oncology business for a total consideration of $2.4 billion, in cash, upon completion. In 2017, the Oncology business generated revenues of $262 million. The total consideration represents a revenue multiple of 9.2 times 2017 revenues. The transaction covers the transfer of Shire’s Oncology business including in-market products ONCASPAR® (pegaspargase), a component of multi-agent treatment for acute lymphoblastic leukemia (ALL) and ex-U.S. rights to ONIVYDE® (irinotecan pegylated liposomal formulation), a component of multi-agent treatment for metastatic pancreatic cancer post gemcitabine-based therapy. The portfolio also includes Calaspargase Pegol (Cal-PEG), which is under FDA review for the treatment of ALL, and early stage immuno-oncology pipeline collaborations.

The gross assets that are the subject of the transaction are approximately $1.6 billion and the profits attributable to the assets being transferred are approximately $140 million, excluding depreciation, amortization and other direct and indirect costs.

Baker McKenzie advised Servier with Stéphane Davin (Picture), Hugo Sanchez de la Espada, Diane Kisler (M&A), Nathalie Marchand, Pauline Celeyron (IP&IT), Léna Sersiron, Romain Travade, Laurianne Coq (Antitrust), Mike DeFranco, Thomas Hughes, J. Brook Mestre and Michelle Carr.

The Davis Polk corporate team includes partner William J. Chudd and associates Evan Rosen and Sarah M. Weissman. Partner Frank J. Azzopardi and associate Paul S. Lee are providing intellectual property and technology advice. Partner Michael Mollerus and associate Anne E. McGinnis are providing tax advice. Partner Kyoko Takahashi Lin and counsel David Mollo-Christensen are providing executive compensation advice. Partner Jesse Solomon is providing antitrust and competition advice.

 

Involved fees earner: William Chudd – Davis Polk & Wardwell; Evan Rosen – Davis Polk & Wardwell; Sarah Weissman – Davis Polk & Wardwell; Frank Azzopardi – Davis Polk & Wardwell; Paul Lee – Davis Polk & Wardwell; Michael Mollerus – Davis Polk & Wardwell; Anne McGinnis – Davis Polk & Wardwell; Kyoko Takahashi Lin – Davis Polk & Wardwell; David Mollo-Christensen – Davis Polk & Wardwell; Jesse Solomon – Davis Polk & Wardwell; Stéphane Davin – Baker McKenzie; Hugo Sanchez de la Espada – Baker McKenzie; Diane Kisler – Baker McKenzie; Michael DeFranco – Baker McKenzie; Thomas Hughes – Baker McKenzie; Brook Mestre – Baker McKenzie; Michelle Carr – Baker McKenzie; Nathalie Marchand – Baker McKenzie; Pauline Celeyron – Baker McKenzie; Léna Sersiron – Baker McKenzie; Romain Travade – Baker McKenzie; Laurianne Coq – Baker McKenzie;

Law Firms: Davis Polk & Wardwell; Baker McKenzie;

Clients: Servier; Shire plc;