Biotech and Pharma

Allergan in talks to acquire Shire, competing against Takeda Pharmaceutical

CEO of global pharamceutical company Allergan Brenton Saunders.
Jean-Pierre Clatot | AFP | Getty Images

Botox maker Allergan is in the "early stages" of talks to acquire drugmaker Shire, the company confirmed Thursday following media reports.

The discussions put Allergan in direct competition with Japan's Takeda Pharmaceutical for the London-listed drugmaker.

Shire rebuffed Takeda on Thursday, turning down an offer worth around $61 billion. Shire said the offer of $66.15 per share in cash and stock "significantly undervalued the company, its growth prospects and pipeline."

Allergan said in a statement that it has not submitted an offer and that there is no certainty of a bid. The company is required by law to announce its intention to make an offer for Shire by May 17.

With additional reporting from Reuters.