Takeda Pharmaceutical Co Ltd (ADR)(OTCMKTS:TKPYY) Will Part With $5.2 billion In Its Acquisition Of Ariad Pharmaceuticals, Inc.(NASDAQ:ARIA)

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Takeda Pharmaceutical Co Ltd

A transaction in which Takeda Pharmaceutical Company Limited has acquired ARIAD Pharmaceuticals has gained a unanimous approval of the boards of directors of both companies.  The deal, which is expected to close by the end of February 2017 on approval of regulatory requirements, will see Takeda acquire all of the outstanding shares in ARIAD at an approximate value of $5.2 billion. The deal will give the Japanese top pharmaceutical company an upper hand in refilling its drug pipeline given that patents of some of its biggest medicines have expired.

But co-founder of the Cambridge biotech could be the biggest beneficiary of the acquisition

Christophe Weber, president and chief executive officer of Takeda is one of the most excited fellows about the acquisition. He says, “The acquisition of ARIAD is a unique opportunity that will enable us to positively impact the lives of more patients worldwide, advance our strategic priorities and generate attractive returns for our shareholder.”

However, Harvey Berger, who served the Cambridge biotech for 24 years as it CEO, maybe one of the biggest winners of Ariad Pharmaceuticals acquisition. As of May 2016, Berger and his family held 4.37 million shares of Ariad making him the company’s largest individual shareholder. He retired at the end of 2015 but assuming he has not shed off his holdings in recent months, his shares would be holding a value of nearly $105 million.

Several institutional investors were also laughing all the way from the sale of the cancer drug developer, which Berger helped to found in 1991. The likes of Boston-based Wellington Management had 17.14 million shares as per the recent information by Thompson Reuters and stands to earn $171 million. The others include China Vanguard Group Limited (HKG:8156), which holds 13.13 million shares and Sarissa Capital, Denner’s fund, which owns 12.85 million shares

Both ARIAD and Takeda are passionate about helping cancer patients

Besides the delivery of immediate and meaningful value of substantial cash premium to their shareholders, the duo is also endeavoring to accelerate the development of cancer treatments.  The two are seeking to ascertain, build up and deliver meticulous therapies to patients with rare cancers. After all, each of them has their stronghold. Nonetheless, the two innovative targeted therapies will help Takeda expand its existing oncology portfolio thus being able to sustain its long-term growth in oncology. In the meantime, ARIAD had its stock close at $23.68 a fall of $0.07 or 0.29% while that of Takeda closed at $21.55 decrease of $0.17 or 0.78%.

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