Report: Baxalta's $2B plot to buy Ariad broke down over price

Last week's buzz that Baxalta ($BXLT), angling to shake off some unwanted buyout attention from Shire ($SHPG), had set sights on Ariad Pharmaceuticals ($ARIA) sent the latter company's shares soaring. But negotiations between the two have since fallen apart, according to Bloomberg. Citing people close to the talks, Bloomberg reports that Baxalta and Ariad couldn't come to terms on a buyout price, and neither company plans to resume negotiations any time soon. Furthermore, Baxalta's interest in Ariad cooled after a few of its investors reacted poorly to the idea of an acquisition, according to the wire service. The news sent Ariad's shares down roughly 20% on Wednesday, giving back much of the value the company racked up on last week's rumor. Meanwhile, Shire is still hanging around with a $30 billion, all-stock offer to buy Baxalta outright, making its efforts public last month as Ludwig Hantson, CEO of the Baxter ($BAX) spinout, argued that the proposal short-changes his company's potential. More

Suggested Articles

Preclinical-stage biotech Abpro Therapeutics wants to trial its two lead candidates for HER2-positive cancers and diabetic macular edema in 2019.

After a rough patch in 2017, the stars seem to be realigning for French CAR-T expert Cellectis, which just closed a $164 million U.S. public offering.

Investment firm Frazier Healthcare Partners has closed its 11th fund—worth $780 million—that will help established companies accelerate their growth.