Commission waives Takeda commitments to obtain clearance of acquisition of ShireChristian Fernsby ▼ | June 1, 2020
The European Commission has waived, under the EU Merger Regulation, the commitments made by Takeda to obtain clearance of its acquisition of Shire.
Topics: Takeda Shire
IBD is a lifelong autoimmune disease that involve inflammation of the digestive tract. Biologic drugs are typically prescribed after the failure of conventional therapies, such as corticosteroids and immunosuppressants.
Following a number of circumstances that took place during the divestiture process, Takeda submitted a reasoned request to waive the commitments in their entirety.
Upon receipt of the request by Takeda to waive the commitments, the Commission has initiated a market investigation to determine whether a waiver is justified in light of the changed market conditions and developments.
The Commission's investigation revealed that several permanent, significant and unforeseeable developments took place during the divestiture process, affecting both the evolution of the competitive landscape in IBD treatments and the development of Shire's pipeline drug.
In particular, during the divestiture process: new promising drugs have emerged, which are expected to have a better efficacy and safety profile than the ones of Takeda's and Shire's drugs; some studies on SHP 647 yielded negative results; and the management of the divestment business experienced unforeseeable difficulties in recruiting patients for the clinical trials of SHP 647.
These developments have negatively impacted the profile of SHP 647 and timeline with longer development duration, and severely impaired its prospects.
On this basis, the Commission concluded that the combination of the above developments amounted to exceptional circumstances so that the divestment of SHP 647 was no longer necessary to render Takeda's acquisition of Shire compatible with the internal market.
As a result, the Commission has decided to waive the commitments submitted by Takeda in November 2018, in their entirety.
Takeda Pharmaceutical Company Limited, headquartered in Japan, is a global pharmaceutical company active in four main therapeutic areas: oncology, gastroenterology, neuroscience and vaccines.
Shire plc (now part of Takeda), headquartered in Ireland, is a global biopharmaceutical company, which specialises in developing treatments for rare diseases across a range of therapeutic areas including immunology, haematology, neuroscience, gastroenterology and genetic diseases. ■