Baxalta develops, manufactures and commercializes therapies for orphan diseases and underserved conditions in hematology, immunology and oncology.
The acquisition is expected to double Shire’s annual revenues to $20bn by 2020, with 65% of the total being generated by its rare disease portfolio.
Shire currently has over 50 programs in clinical development, with a mix of early, mid and late-stage projects. The company employs over 22,000 employees across more than 100 countries.
Baxalta shareholders will receive $18 in cash for each share and 0.1482 Shire American depositary shares.
The merger is expected to generate annual cost savings of over $500m within the first three years.
Shire CEO Flemming Ornskov said: "Upon the completion of our combination with Baxalta, Shire is now the global leader in rare diseases, with the number one rare diseases platform based on both revenue and pipeline programs.
"We have made impressive progress on integration planning since announcing the combination, moving much faster than other transactions of similar size based on benchmarks, to create certainty for our employees and to better serve our patients and customers going forward."
Shire’s products are available in over 100 countries across core therapeutic areas including hematology, immunology, neuroscience, lysosomal storage disorders, gastrointestinal, gastrointestinal/endocrine, and several others.
Image: Shire location in Lexington Massachusetts, US. Photo: courtesy of John Phelan.