Irish drug maker Shire is buying American pharma firm Baxalta for $32 billion, creating a leading global biotech projected to generate over $20 billion in annual revenues by 2020.

“This proposed combination allows us to realize our vision of building the leading biotechnology company focused on rare diseases,” said Flemming Ornskov, chief executive officer, Shire. “Together, we will have leadership positions in multiple, high-value franchises and become the clear partner of choice in rare diseases.”

The rare diseases platform will have leading products in each of the following growing, multi-billion-dollar therapeutic areas: hematology; immunology; neuroscience; lysosomal storage diseases; gastrointestinal/endocrine; and hereditary angioedema (HAE).

The combined company will also have a growing franchise in oncology, with approved products and innovative compounds in development, as well as a robust late-stage ophthalmics pipeline.

Altogether there will be more than 60 programs in development, including over 50 that will address rare diseases and the newly-approved Baxalta products Adynovate, Vonvendi and Obizur. Shire anticipates more than 30 recent and planned product launches from the combined pipeline, contributing approximately $5 billion in annual revenues by 2020.

“We bring to Shire a strong portfolio and pipeline of market-leading products, high-quality manufacturing capabilities and a talented global workforce that places patients at the center of everything we do,” said Ludwig Hantson, chief executive officer, Baxalta. “The combined organization will be well positioned to accelerate innovation and deliver enhanced value for all stakeholders.”