Shares in Japanese pharmaceuticals giant Takeda dropped today after the company was forced to reveal it was mulling a bid to buy rival Shire.
Takeda yesterday said it was in the preliminary stages of considering an offer for the Ireland-headquartered rare disease drugmaker – an announcement that sent Shire's shares flying as much as 25 per cent.
However, Takeda's Tokyo-listed stock dropped 7.45 per cent today to 5,120 yen, suggesting its investors were less keen on the news.
Andy Smith, analyst at Edison Investment Research, said: "On the face of it, it sounds like Takeda might bag themselves a bargain but [Shire's] Baxalta acquisition – a wasting asset in a highly competitive haematology market with new entrants like Roche – has been a disaster and investors seem to have fallen out of love with the building site now known as Shire.
"While Takeda have recognised that Shire is undervalued, they may not yet have realised why it is so cheap yet," Smith said.
Shire's shares also pared gains today, falling 1.57 per cent to 3,445p at the time of writing.
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