The Baxalta acquisition has multiple pros and cons for Shire.

To evaluate the
acquisition, we
should look at it from different angles.

From a competitive perspective, the acquisition falls well in line with the M&A
trend of the
biopharmaceutical industry where being an economy of scale provides access to
greater
markets and increased brand recognition thus leading to increased trust among
users. Shire
will be able to benefit out of the product diversification being able to leverage
the expertise
of Baxalta to enter the medical therapies market for rare diseases which generates
cross
selling opportunities for Shire.

In terms of the organisational integration, the acquisition will make the research
and
development team of Shire much more robust as Baxalta is one of the leading
biopharma
companies in the industry. Shire will also benefit out of the strong manufacturing
department
of Baxalta, present in 12 different sites across the world.

Additionally, both Shire and Baxalta have similar company cultures with strong
emphasis on
innovation aimed at providing medical treatments to the underserved communities,
With their
employee centric work environments, and emphasis on delivering to the stakeholders,
the
Baxalta acquisition seems to prove beneficial.

From a financial standpoint, the acquisition will result in cost synergies with
combined
technologies and departments. The acquisition might lead to tax synergies as well
(US vs
Dublin). Revenue synergies are also expected but are subject to various potential
operational
disruptions. Due to the M&A wave within the pharmaceutical industry, Shire will
probably

pay a high premium. Thus, a premium that