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Actionable news in BXLT: BAXALTA INCORPORATED,

Shire: Playing Defense While Waiting on Baxalta

Shire's offices at the Citywest Business Campus in Dublin, Ireland.

The Dyax deal, on the face of it, has plenty of red flags. Dyax’s key product is a pipeline drug, known as DX-2930, to treat hereditary angioedema. Dyax only has early-stage, “proof of concept” data in 15 patients for the product; while very promising, late-stage trials haven’t yet started.

The company is loss-making, which will weigh on Shire’s earnings per share unless or until DX-2930 is approved; near-term cost savings are limited. Meanwhile, Dyax shares had soared 96% this year. Shire is paying a 35% premium on top of that, plus a further 15% contingent on the drug’s approval.

But this deal is more about defending Shire’s existing rare-diseases...


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