More than 500 Pennsylvania-based Shire workers are shipping up to Boston in a move CEO Flemming Ornskov says will "streamline operations and drive further efficiencies."
Shire is following the biopharma trend of ditching far-flung outposts in favor of a centralized hub, shifting workers from its former U.S. headquarters in Pennsylvania to its Boston-area home base in a move the company believes will better align its sprawling business.
AbbVie can count this among the consequences of canceling its Shire buyout: Deal-focused hedge funds are losing investors.
Post-Shire-breakup, AbbVie CEO Richard Gonzalez says his company will be scouting about for other "strategic" M&A hookups. But Shire chief Flemming Ornskov isn't interested in courting another buyer.
A $1.64 billion breakup fee may have placated buyout target Shire after AbbVie pulled the plug on their $55 billion agreement. But investors? At least one may still be planning a little ax-grinding.
Shire is riding solo after AbbVie called it quits on its proposed $52 billion acquisition, but the company isn't shedding too many tears. The Dublin-based drugmaker announced third-quarter earnings that beat analysts' expectations, leaving the door open for success post-AbbVie.
Valeant's takeover partner, Bill Ackman, is not slowing down in his pursuit to land a deal for Allergan. But a key investor may no longer be quite so gung-ho.
Days after AbbVie recommended that shareholders vote against its proposed $55 billion deal for Shire, the company officially cut the cord and terminated its pending merger. And while Shire has big plans to succeed solo, AbbVie could face a few stumbling blocks without the Dublin-based company by its side.
Shire and AbbVie have formally called it quits on a planned $55 billion merger, leaving each company to get by on the merits of its own pipeline and talk up the benefits of life without the other.
While its merger with AbbVie is looking dead, Shire is likely in line for a $1.6 billion breakup fee, cash that could fund a major M&A push. And with renowned dealmakers in its executive ranks, Shire may not be lonely for long.