Eli Lilly Comes Out Swinging

Eli Lilly Comes Out Swinging

The annual J.P. Morgan Healthcare conference in San Francisco concluded last week with very few big deal announcements. In January 2019, Bristol-Myers Squibb (NYSE: BMY) made its $74 billion takeover of Celgene Corporation (NASDAQ: CELG) public just before the conference started. That was quickly followed by Eli Lilly and Company’s (NYSE: LLY) $8 billion deal for Loxo Oncology. This year, Eli Lilly was back in the spotlight with an agreement to acquire Demira, Inc. (NASDAQ: DERM), the largest deal announced in January. The $1.1 billion cash price (13.3x revenue), or $18.75 a share, represents an 86% premium to the 60-day volume-weighted average trading price of Dermira’s stock... Read More »
Cancer Treatments Are Driving Biopharmaceutical M&A

Cancer Treatments Are Driving Biopharmaceutical M&A

It’s been a busy year for mergers and acquisitions in the Biotechnology and Pharmaceutical industries. Combined spending on M&A is close to $268 billion mid-way through December, with 229 transactions reported. Although the number of deals is 34% lower than 2018’s combined total of 345, spending skyrocketed 62%, from just $165 billion in all of 2018. Two recent deals from major drug manufacturers highlight what’s behind the trend. On December 9, Sanofi announced its $2.5 billion acquisition of Synthorx, Inc. (NASDAQ: THOR), a clinical-stage biotechnology company focused on treating cancer and autoimmune disorders. The price consists of $68 per share, a 172% premium to... Read More »
Sobi Grows Product Portfolio With 2nd Deal

Sobi Grows Product Portfolio With 2nd Deal

Swedish Orphan Biovitrum AB (STO: SOBI), an international specialty healthcare company dedicated to rare diseases, announced its acquisition of Dova Pharmaceuticals, Inc. for $867.7 million (65.3x revenue), or 27$ per share. Dova acquires, develops and commercializes drug candidates for diseases such as thrombocytopenia, a condition that leaves an individual with a low blood platelet count. Its primary candidate, Doptelet, is pending approval for the treatment of chemotherapy-induced thrombocytopenia (CIT). A CVR worth $1.50 per share will be granted if Doptelet is approved, totaling a potential $915 million. An indirect subsidiary of Sobi is acquiring Dove to bolster its hematology and... Read More »
August Deal Flow Ebbs, as It Follows the Annual Cycle

August Deal Flow Ebbs, as It Follows the Annual Cycle

Enough about slowdowns and recession. August is typically a roller-coaster month in the equity markets and August 2019 didn’t disappoint in that regard. The bond markets’ inverted yield curve persisted into September and that’s never a good sign. We’re moving on. Preliminary data show August’s deal volume wasn’t so bad, considering how most of 2019 has played out. The 125 deals announced in August represent a drop of 8% compared with the previous month’s 136 deals, and a 27% drop compared with August 2018. After a record-setting year in 2018, with more than 1,900 transactions and $333.3 billion on the books, a repeat would be nearly as scary as a sudden downturn (which may be coming,... Read More »
Merck Buys Immunotherapy Firm Immune Design

Merck Buys Immunotherapy Firm Immune Design

Merck & Co., Inc. (NYSE: MRK), the global healthcare and pharmaceutical company, has acquired Immune Design (NASDAQ: IMDZ) for $300 million. Merck will buy all outstanding shares of Immune Design at a value of $5.85 per share. With reported revenue of only $2 million, Immune Design’s price tag equals close to a 136x EBITDA multiple. Out of this deal, Merck will gain key intellectual properties from Immune Design: GLAAS and ZVex. These properties can potentially activate the immune system’s natural ability to generate and expand immune cells to fight cancer and other chronic diseases. The acquisition of Immune Design highlights the demand for immunotherapy platforms and... Read More »