Ariad to be acquired by Takeda for $5.2 billion

Ariad stockholders to receive $24.00 per share in cash.

Under the terms of the agreement, Ariad stockholders will receive $24.00 in cash for each share of Ariad common stock they own. The transaction has been approved unanimously by the boards of directors of both companies, and is expected to close by the end of February 2017, subject to required regulatory approvals and other customary closing conditions.

Paris Panayiotopoulos, President and CEO of Ariad, said: “We are very pleased to combine with Takeda, which will allow us to not only accelerate our mission to discover, develop and deliver precision therapies to patients with rare cancers, but also deliver meaningful value to our shareholders through a substantial cash premium. This exciting transaction is a testament to the hard work and dedication of Ariad’s talented team of employees. We have tremendous respect for Takeda, and I believe our shared commitment to innovation and research-driven cultures will provide for a smooth transition.”

Alexander J. Denner, Chairman of the Ariad Board of Directors, said: “This transaction is a great outcome for ARIAD shareholders and brings hope to improve the lives of many cancer patients. It has been a pleasure to work with our outstanding management team and, on behalf of the board of directors, I extend our deepest gratitude to everyone at Ariad for their unrelenting dedication.”

Dr Denner continued: “The transaction also underscores the tremendous value that shareholder activism can create for shareholders, patients and society. While Ariad’s stock price was collapsing and many investors were abandoning the company, Sarissa Capital saw a company with important drugs and innovation and stepped in to become one of Ariad’s largest shareholders. However, many things needed to be fixed before the value could be realized. With a new board and management team, Ariad was able to focus on optimal capital allocation and operational excellence. As a result, the company created meaningful shareholder value and advance the options for those suffering from rare cancers.”

“The acquisition of Ariad is a unique opportunity that will enable us to positively impact the lives of more patients worldwide, advance our strategic priorities and generate attractive returns for our shareholders,” said Christophe Weber, president and CEO of Takeda. “This is a very exciting time for Takeda as we will broaden our hematology portfolio and transform our global solid tumor franchise through the addition of two innovative targeted therapies. Opportunities to acquire such high-quality, complementary targeted therapies do not come often, and we are very excited about the potential for this transaction to benefit patients, our shareholders and other stakeholders.”

Under the terms of the agreement, the acquisition is structured as an all cash tender offer for all of the outstanding shares of Ariad common stock, followed by a merger in which remaining shares of Ariad would be converted into the right to receive the same $24.00 cash per share price paid in the tender offer.