DUBLIN, Ireland—Shire plc (LSE: SHP, NASDAQ: SHPG), which markets the dry eye treatment Xiidra, found itself in the middle of what looked like a takeover tussle with two other big pharma companies early on Thursday. But by late afternoon, Allergan, one of the two companies eyeing a possible bid for Shire, decided against making an offer and remained on the sideline at VMAIL press time while Takeda Pharmaceutical Co., and Shire continued their discussions about a possible deal. Allergan, earlier in the day, had said it was in “the early stages” of considering an offer for Shire.

Takeda, a Japanese pharma company that had previously expressed interest in a deal for Shire, confirmed it was still in discussions with Shire about the terms of a deal. Takeda acknowledged that it previously has made three offers for Shire, all of which were rejected. Shire is best known for its portfolio of drugs to treat rare diseases.

At midday, Shire issued its own statement acknowledging Takeda’s purchase offers and noting that its board had considered the most recent Takeda proposal “and unanimously rejected it, concluding that it continues to significantly undervalue the company and Shire’s growth prospects and pipeline.” Shire said the most recent Takeda offer amounted to 46.50 pounds and was made April 12 (comprised 17.75 pounds in cash, which would be paid in U.S. dollars, and 28.75 pounds worth of new Takeda shares). According to Shire, the offer valued Shire at approximately 44 billion pounds ($62.6 billion).

A Takeda statement confirmed these details of the April 12 offer for Shire, and noted that it was “subsequently notified that the board of Shire had rejected its proposal. Discussions between the parties regarding a potential offer are ongoing.” Takeda said it also wanted to “reiterate that it will remain disciplined with respect to the terms of any such offer.”

Takeda noted that by building on its existing momentum, “the acquisition of Shire would accelerate [a] transformation and result in a global, value-based, R&D-driven biopharmaceutical leader headquartered in Japan, with a balanced geographic footprint, a robust, modality-diverse pipeline and enhanced financial strength.”
Responding to media reports early Thursday about a Shire deal, Allergan said it could confirm that it is in “the early stages of considering a possible offer for Shire plc. No offer has been made. There can be no certainty an offer will be made nor as to the terms on which any such offer would be made. A further announcement will be made as appropriate.”

Allergan’s product portfolio includes Restasis (indicated for dry eye), Lumigan (for treating high eye pressure among people with glaucoma) and Latisse (indicated to grow eyelashes for people with inadequate or not enough lashes). In addition, the Allergan statement noted that Allergan is in the midst of “evaluating a full range of potential strategic actions that will create value for shareholders, such as divestitures, combinations and acquisitions. The company has hired multiple financial advisors to assist in the review of these options.”