TOKYO: Japan’s Takeda Pharmaceutical Co. Ltd. said on Monday it would buy cancer drug maker Ariad Pharmaceuticals Inc. in a deal valued at $5.20 billion, to beef up its oncology pipeline.
Ariad stock was up 74.7 percent at $23.98 in premarket trading.
Takeda has agreed to pay $24 in cash for each Ariad share, a premium of about 75 percent to its Friday close.
Ariad’s leukemia drug, Iclusig, which is expected to generate sales of $170 million-$180 million in 2016, came under fire in October for “staggering” price increases.
A US Food and Drug Administration decision on its lung cancer treatment Brigatinib, which is being touted as a potential blockbuster, is expected by April 29.
Cancer treatment is a target for many large drugmakers, with high prices being paid for promising assets, such as Medivation, which was bought by Pfizer Inc. for $14 billion.
Takeda’s negotiations to acquire Valeant Pharmaceuticals International Inc’s Salix stomach-drug business have stalled over price disagreements, Reuters reported in November, citing people familiar with the matter.
The Ariad deal, which Takeda plans to fund by taking on $4 billion in new debt as well as existing cash, is expected to close by the end of February.
Ariad had long-term debt of about $522 million as of Sept. 30, according to a regulatory filing.
The equity value of the deal, which is expected to add to Takeda earnings in 2018, is $4.66 billion, according to Reuters calculations.
Japan’s Takeda to buy US cancer drug maker Ariad
Japan’s Takeda to buy US cancer drug maker Ariad
Closing Bell: Saudi main index closes in red at 10,414
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower on Wednesday, shedding 38.85 points, or 0.37 percent, to finish at 10,414.06.
Total trading turnover on the benchmark index reached SR3.46 billion ($920 million), with 123 stocks advancing and 134 declining.
The Kingdom’s parallel market Nomu also shed 41.61 points, or 0.18 percent, to close at 23,428.67.
The MSCI Tadawul Index edged down 0.45 percent to 1,368.36.
Arabian Drilling Co. was the best-performing stock on the main market, with its share price rising 6.8 percent to SR102.90.
Naqi Water Co. gained 4.30 percent to SR58.25, while Saudi Ground Services Co. advanced 3.78 percent to SR38.42.
Tihama Advertising, Public Relations and Marketing Co. saw its share price fall 4.95 percent to SR16.31.
AlAhli REIT Fund 1 also declined 3.53 percent to SR6.29.
On the announcements front, United Mining Industries Co., listed on the parallel market, said it has begun commercial production of gypsum board at its plant in Yanbu.
In a Tadawul statement, the company said the financial impact of the project’s commercial production will be reflected in the first quarter of 2026.
United Mining Industries Co.’s share price was unchanged, closing at SR42.54.
Dkhoun National Trading Co. said its shareholders approved the board’s recommendation to distribute interim dividends on a semi-annual or quarterly basis for 2025.
According to a Tadawul statement, shareholders also approved transferring the balance of the company’s statutory reserve, valued at SR2.43 million, to retained earnings.
Dkhoun National Trading Co.’s shares saw no trades and closed at SR65.
