Shire Completes Combination With Baxalta - Quick Facts

(RTTNews) - Shire plc (SHP.L, SHPG) announced it has completed combination with Baxalta Inc. (BXLT). Baxalta became an indirect wholly-owned subsidiary of Shire. Shire said the company is now the global leader in rare diseases, with the number one rare diseases platform based on both revenue and pipeline programs. It now has more than 50 programs in clinical development, with a balanced mix of early, mid and late-stage projects.

The combination is expected to be accretive to non-GAAP EPS in 2017, the first calendar year of ownership, and beyond, with an attractive ROIC that will exceed Shire's cost of capital in 2020. Through the combination, Shire expects to deliver double-digit compound annual top-line growth, with over $20 billion in annual projected revenue by 2020 and approximately 65% of total annual revenues being immediately generated by its rare disease products.

The combined company is expected to yield annual operating cost synergies of at least $500 million within the first three years post-closing. Shire expects to generate additional revenue synergies and a combined non-GAAP effective tax rate of 16-17% by 2017.