Shire and Baxalta confirm merger agreement

Shire has announced that it will be combining with Baxalta following the agreement of a $32 billion (22.11 billion pounds) merger deal.

The merger is expected to be finalised midway through 2016 and will create a new global leader in the field of rare diseases, with products in this area set to generate 65 percent of the new-look company's total annual revenues.

Its expanded portfolio will allow it to have a market presence in more than 100 countries, helping to drive growth to exceed $20 billion in anticipated annual revenues by 2020, with 30 recent and planned product launches.

In total, it will have more than 60 programmes in development, including over 50 that will address rare diseases and the newly-approved Baxalta products Adynovate, Vonvendi and Obizur.

Following the completion of the deal, Baxalta chairman Wayne Hockmeyer is expected to become deputy chairman of the combined business, while two additional directors will be included from the Baxalta board.

Dr Flemming Ornskov, Shire's chief executive officer, said: "Our due diligence has reinforced our belief in the combination, and we look forward to welcoming Baxalta colleagues to a shared entrepreneurial patient-driven culture."