TOKYO (AP) -- Takeda Pharmaceutical Co. said Thursday it has agreed to buy U.S. biotechnology company Millennium Pharmaceuticals, Inc. for US$8.8 billion (euro5.6 billion) to expand further into cancer research and treatment.

 

In the all-cash tender offer, Takeda is buying the Cambridge, Massachusetts-based company for US$25 (euro15.90) a share, the Japanese company said in a statement.

 

The deal comes as Japan's largest drugmaker, which ranks only 17th globally, struggles to stay afloat amid growing competition.

 

Osaka-based Takeda, which specializes in ''lifestyle-related diseases'' such as diabetes and cardiovascular problems, said it can acquire a new strength in cancer treatments through the deal.

 

''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.''

 

Takeda has been aggressively expanding its business ties recently with U.S. drugmakers that are strong in cancer drugs. In February, Takeda struck a deal to buy biotech giant Amgen Inc.'s Japanese unit, obtaining licensing rights over Amgen's cancer drugs in Japan and the rest of Asia.

 

Takeda also got an exclusive right to develop and globally market Cell Genesys Inc.'s prostate cancer vaccine.

 

Takeda said Millennium's key product, a blood cancer drug Velcade, is expected to rake in revenue of as much as US$345 million this year.

 

Takeda, whose stocks fell 2.52 percent Thursday on the Tokyo Stock Exchange, announced the deal after the market closed.