A major player is rising in the drug industry. Shire announced that it's officially taking over Baxalta, another drugmaker, according to Bloomberg. The deal is valued at almost $32 billion, and it's a merger that will make Shire the world's largest producer of rare disease-curing drugs.
The merger is expected to help Shire grow by more than 60 percent, which will value the company at $176 billion in the next five years. Sales are expected to spike to more than $20 billion in the same time frame as well.
The cost for the takeover includes both cash and stocks, according to Fortune. Those with shares in Baxalta will receive $18, plus a 0.1482 depositary share of Shire.
This announcement comes after a year of major health care mergers in the sector.
"This proposed combination allows us to realize our vision of building the leading biotechnology company focused on rare diseases. Together, we will have leadership position in multiple, high-value franchises and become the clear partner of choice in rare diseases," said Shire Chief Executive Flemming Ornskov in a news release, reported the New York Times.
The deal is expected to be finalized over the next six months, though it is ultimately subject to regulatory approval as well as shareholder approval.
