KEY THOUGHT: Takeda announced the sale overnight, with Shire’s board accepting Weber’s offer of £49 a share, which values the company at £46 billion. Now he’ll have to sell it to shareholders — which is not a given after Takeda saw its market cap plunge more than 20% during the talks. Why did Takeda buy Shire? Nothing more than a pissing match.
Millennium pharmaceuticals was a company that spun out of a collaboration with MIT and Mass General hospital. It was innovative in many ways and was one of the first to use social media to build a bond with patients. Oncologists rated the company very highly when it came to trust, science and innovation and then Takeda bought the company, changed the name and it fell off the map.Takeda is a very conservative Japanese company and the latest acquisition is just a numbers game and will undoubtedly lead to less innovation and a loss of a lot of jobs.
According to Endpoint News ” If Takeda gets past that hurdle they will need to knit together a new top 10 — by sales — global pharma company while carving out $1.4 billion in cost synergies. About $600 million will come out of two R&D organizations that have already been through several cycles of restructuring. Slightly more than half will come from sales and administration. That means job cuts.
Drill down into the fine print of the deal, and you’ll find that the top execs at Takeda will ax 6% to 7% of the combined workforce. About a third of that will come out of R&D, with the bulk of the cuts being made in sales and administration. With about 30,000 staffers at Takeda and 22,000 at Shire, a 7% cut would cost the jobs of about 3,640 people.
So how does this new mega merger effect patients? It means higher costs of drugs, to pay for the merger, less innovation, via R&D cuts, and patients support service cuts. Make no mistake this merger was done because of the CEO’s ego, nothing else. Even the Street is down on this merger. Do you need more proof that big pharma is bad for business?