Advised Takeda Pharmaceutical Company in its Acquisition of Shire

In November 2018, the European Commission approved the $62 billion (£46 billion) acquisition of Shire by Takeda Pharmaceutical Company subject to remedies, after a Phase I investigation. The transaction was the largest biopharma deal of 2018, creating the ninth-largest drug company in the world.

Compass Lexecon was hired by Takeda to provide economic advice regarding the competitive effects of the transaction. We analyzed market shares and market definition and assessed vertical relationships between the merging parties and their competitors. The European Commission had specific concerns relating to loss of innovation and a reduction in potential future competition, as Shire was creating a pipeline product for biological treatments of inflammatory bowel disease (IBD), which Takeda already produced. The proposed divestment of Shire’s pipeline product was the key to clear the transaction.

The Compass Lexecon team included Enrique Andreu, Miguel de la Mano, Georges Siotis and Daniel Westrik, working closely with a team from Linklaters.