Report : Takeda Sees In Shire A Key To New Drug Discovery

(RTTNews) - Japan's Takeda Pharmaceutical (TKPHF.PK, TKPYY.PK) is in talks to buy Irish drugmaker Shire Plc. (SHPG, SHP.L), as it looks to capitalize on Shire's treatments for rare diseases in the face of stiff global competition, Nikkei Asian Review reported.

Orphan drugs, as treatments for rare diseases are called, are by definition a niche market. Some rare or undiagnosed conditions may affect only a handful of people in a country. In Japan, some are also designated intractable diseases by the government.

But there is an upside to orphan drugs for pharmaceutical companies: It is relatively easy to gain approval and set high prices for new treatments, as governments try to ensure that patients receive adequate care. Against this, drugmakers must balance high development costs and a small number of patients.