Takeda Bids $8.8B for US' Millennium

Takeda, which specializes in treatments for diabetes and cardiovascular problems, continues to push for more access to cancer drugs with its most recent bid.

Millennium's top drug is the blood cancer treatment Velcade, which is expected to generate revenue of $345 million this year.

"The area of cancer treatments, in which Millennium is particularly strong, is one of our company's most important areas of research and development," Takeda said in a statement. "We believe the deal, the largest for the company, is an extremely important investment to ensure our sustainable growth in the future."

Japan's largest drugmaker by sales has struggled to stay competitive, aggressively expanding ties with U.S. drug makers, particularly those that focus on cancer.

Ranking 17th among global drug makers, Takeda is attempting to head off a loss in revenue as its patents expire on key drugs. The company is dipping into cash reserves for a shopping spree.

In February, Takeda struck a deal to buy biotech giant Amgen Inc.'s Japanese unit and obtained licensing rights for a number of its cancer drugs in Asia. Takeda also landed right to develop and globally market Cell Genesys Inc.'s prostate cancer vaccine

The cash offer is worth $25 per share, more than a 50 percent premium over Millennium's Wednesday closing share price of $16.35. Shares, however, soared 49 percent, or $8.10, to $24.46 in early trading Thursday.

Millennium President and CEO Deborah Dunsire said that both companies aim to develop new medicines.

"We expect this transaction to help accelerate that vision and deliver tremendous value to patients, shareholders and our employees," Dunsire said in a statement.