Shire/AbbVie Counterbid Unlikely at This Stage, Bernstein Says
2014-07-18 12:12:27.655 GMT
By Gaurav Panchal
July 18 (Bloomberg) -- Another bidder may enter the party,
is very unlikely at this stage, Bernstein’s Aaron Gal says in
note following confirmation of deal.
* As a risk to deal sees, AbbVie unable to re-domicile Humira,
which accounts for over 50% of current company’s topline;
likely main asset whose tax rate is reduced
* Deal puts more pressure on remaining U.S. drug companies to
re-domicile overseas or at least supports the drive to
change laws in U.S.: Gal
* Orphan drug and other novel science companies could benefit:
Gal
* Says deal values Shire at 24x 2015 EPS, on EV/last 12M
EBITDA; could put prices of companies with novel science
and/or rare disease capabilities higher
* Rates Shire marketperform, PT raised to 5,300p vs 3,700p
* Deal Tearsheet: {NSN N8WJ2S6JTSEA<Go>}
* July 14: AbbVie Chases Shire, Peers May Seek M&A Overseas
War Chest Use {NSN N8PV4I6KLVS1<Go>}
Link to Company News:{SHP LN <Equity> CN <GO>}
Link to Company News:{ABBV US <Equity> CN <GO>}
For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}
To contact the reporter on this story:
Gaurav Panchal in London at +44-20-7392-0511 or
gpanchal2@bloomberg.net
To contact the editor responsible for this story:
Brian Lysaght at +44-20-7330-7908 or
blysaght@bloomberg.net
2014-07-18 12:12:27.655 GMT
By Gaurav Panchal
July 18 (Bloomberg) -- Another bidder may enter the party,
is very unlikely at this stage, Bernstein’s Aaron Gal says in
note following confirmation of deal.
* As a risk to deal sees, AbbVie unable to re-domicile Humira,
which accounts for over 50% of current company’s topline;
likely main asset whose tax rate is reduced
* Deal puts more pressure on remaining U.S. drug companies to
re-domicile overseas or at least supports the drive to
change laws in U.S.: Gal
* Orphan drug and other novel science companies could benefit:
Gal
* Says deal values Shire at 24x 2015 EPS, on EV/last 12M
EBITDA; could put prices of companies with novel science
and/or rare disease capabilities higher
* Rates Shire marketperform, PT raised to 5,300p vs 3,700p
* Deal Tearsheet: {NSN N8WJ2S6JTSEA<Go>}
* July 14: AbbVie Chases Shire, Peers May Seek M&A Overseas
War Chest Use {NSN N8PV4I6KLVS1<Go>}
Link to Company News:{SHP LN <Equity> CN <GO>}
Link to Company News:{ABBV US <Equity> CN <GO>}
For Related News and Information:
First Word scrolling panel: {FIRST<GO>}
First Word newswire: {NH BFW<GO>}
To contact the reporter on this story:
Gaurav Panchal in London at +44-20-7392-0511 or
gpanchal2@bloomberg.net
To contact the editor responsible for this story:
Brian Lysaght at +44-20-7330-7908 or
blysaght@bloomberg.net