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ARIA - ARIAD Pharmaceuticals Inc News Story

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Last Trade - 15/02/17

Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £142.8m
Position in Universe th / 6406

UPDATE 1-Japan's Takeda ready for fresh acquisitions after $5.2 bln Ariad deal

Tue 10th January, 2017 3:34am
* Takeda able to limit debt, retain credit rating post Ariad 
    * Takeda sees Ariad Brigatinib's annual sales exceeding $1 
 (Adds CEO and CFO comments from conference call) 
    TOKYO, Jan 10 (Reuters) - Japan's Takeda Pharmaceutical Co 
 4502.T  said it has the financial capacity for fresh 
acquisitions to bolster its drug portfolio after agreeing on 
Monday to acquire cancer drug maker Ariad Pharmaceuticals 
 ARIA.O  in a $5.20 billion deal.*:nL4N1EZ3G6  
    The Ariad deal, at a 75 percent premium, is the latest 
example of pharmaceutical companies paying handsomely to snap up 
promising drugs owned by rivals in a bid to secure revenue 
growth. Pfizer Inc  PFE.N  agreed in August to pay $14 billion 
for Medivation Inc, the maker of the $2.2 billion-a-year cancer 
drug Xtandi.*:nL3N1B33CO  
    Takeda's Chief Financial Officer James Kehoe said that the 
Japanese company's acquisition spree may continue. 
    "Should the right deal come along we have the capacity,"  
Kehoe said during a conference call after Takeda announced the 
Ariad purchase. The company was in a position to limit its debt 
burden and retain a strong credit rating, he said. 
    At the end of its last business year that ended on March 31, 
Takeda had 438 billion yen ($3.79 billion) in cash and cash 
    Takeda's Chief Executive Officer Christophe Weber said on 
the same call that while there were not many opportunities to 
buy cancer drugs and central nervous system drugs, such as 
Alzheimer remedies and bipolar treatments, the company, 
nevertheless, would make acquisitions "that make sense." 
    Takeda's move comes as it readies to face imminent generic 
competition for its top-selling blood cancer drug Velcade, with 
other key products slated to go off patent later from 2020.  
    Weber said the potential returns from Ariad's lung cancer 
treatment, Brigatinib, and its leukemia drug, Iclusig, along 
with other formulas in its pipeline justified the high premium. 
    Takeda predicts annual sales from Brigatinib, which the U.S. 
Food and Drug Administration is expected to decide on by April, 
could exceed $1 billion. 
    "It has the potential to be the best in class," Weber said 
($1 = 115.7000 yen) 
 (Reporting by Tim Kelly; Editing by Michael Perry and 
Muralikumar Anantharaman) 
 ((; +813-6441-1311;)) 
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