Shire CEO: Baxalta Deal 'Creates Significant Value' And Will Create The World's Leading Rare Disease Company 'By A Wide Margin'

Shire PLC (ADR) SHPG's CEO, Flemming Ornskov was a guest on CNBC's "Closing Bell" on Tuesday to discuss the company's acquisition of Baxalta Inc BXLT.

Ornskov said Shire's $32 billion acquisition of Baxalta is a "very good deal" and the company's long-term investors "totally understand it." He added that the acquisition "creates significant value for shareholders" in addition to creating a "unique platform that is going to be the world's leading rare disease company by a wide margin."

Related Link: Shire-Baxalta Combination Official, Shareholders Get $18 In Cash And Rest In Shares

Ornskov also noted that the rare disease segment is "one of the most attractive" segments of healthcare as there are more than 7,000 rare diseases, many of which have no treatment. As such, a joint Shire-Baxalta entity will represent a "patient focused culture."

Finally, Ornskov argued that Shire's acquisition of Baxalta is "not about [tax] inversion" as it is "about growth and creating a leader in rare diseases."