Shire launches bid to acquire Baxalta

Shire has confirmed its intention to acquire Baxalta following the launch of a $30 billion (19.2 billion pound) bid to purchase the newly independent company.

Baxalta, the former biopharmaceuticals division of Baxter, was spun off as a standalone business last month and previously received and rejected a similar takeover bid from Shire on July 10th.

Shire has now chosen to take its offer public, stating that the move would create substantial value for shareholders and result in a combined entity with a leading position in the field of rare diseases.

Together, Baxalta and Shire would be projected to deliver product sales of around $20 billion by 2020, according to Shire's estimates.

Flemming Ornskov, chief executive officer of Shire, said: "It is our strong preference to immediately enter into a negotiated transaction to explore the full potential of the proposed combination and finalise the terms of an agreement."

Despite this, Baxalta has rejected the bid, with chief executive Dr Ludwig Hantson saying he believes it does not reflect the true value of the business.