Shares in drugmaker Shire jump on buyout interest by Takeda

LONDON — Shares in Irish drugmaker Shire Plc are up sharply after Japanese rival Takeda said it’s considering a takeover offer.

Shire’s shares jumped 21 per cent to 37.10 pounds in London. That puts the company’s market value at 33.7 billion pounds ($47.2 billion).

Takeda said in a statement that buying Shire would enhance its R&D and its reach into the U.S. It said its consideration for a takeover “is at a preliminary and exploratory stage and no approach has been made to the board of Shire.”

Shire focuses on rare diseases, a field that has become of increasing interest to pharmaceutical companies as established drugs face competition from generic versions.

Takeda has been expanding overseas to compensate for slowing growth at home. Last year it bought Ariad Pharmaceuticals of Cambridge, Massachussetts.