Shire rebuffs AbbVie
Shire has turned AbbVie down yet again. An acquisition would benefit Chicago's AbbVie in two key ways. First, a successful acquisition would give the Illinois firm a favorable tax address if it declares Ireland its home. Second, the acquisition would give AbbVie a foothold in the rare-disease space in which Shire has established itself. AbbVie offered to buy Shire for $46.5 billion.
Shire made a case for its independence in a presentation Monday, in which the company said it is poised to bring in $10 billion in product sales by 2020. The company anticipates that in-line product sales will make up 70% of that projection, and the remaining $3 billion, or 30%, will come from existing pipeline products.
Shire told investors that near-term expectations hover around the $6.5 billion sales mark for next year.
Cenkos Securities analyst Navid Malik tells Bloomberg Shire's 2020 forecast is “very achievable” and the New York Times notes that Shire has been shaping itself for this very moment through efforts including its $4.2 billion ViroPharma acquisition in November.