Biotech Firms Bet Big on Oncology
The Biotechnology sector is placing a big bet on oncology. Throughout 2020, M&A in the Biotechnology sector has focused heavily on targets involving oncology research and products, both in deal volume and spending. Of the 97 Biotechnology deals reported through September 30, 26% involved oncology targets, with $37.25 billion in deal value, or 65% of the sector’s total announced spending, according to search results in our HealthCareMandA.com Deal Database. In the first three quarters of 2019, demand for oncology targets hit only 20% of deal volume, revealing an increased interest in 2020. Spending in 2019 for oncology targets and collaborations easily eclipsed the total this year,... Read More »
Bristol Myers Pumps up with MyoKardia
It’s been a busy year for Bristol Myers Squibb (NYSE: BMY) and its bankers. After two deals announced in 2020, the pharma giant is back for more with a $13.1 billion cash offer ($225 per share) for MyoKardia, Inc. (NASDAQ: MYOK). MyoKardia is a clinical-stage biopharmaceutical company focused on targeted therapies for the treatment of serious cardiovascular diseases. Through the transaction, Bristol Myers gains mavacamten, a potential first-in-class cardiovascular medicine for the treatment of obstructive hypertrophic cardiomyopathy (“HCM”), a chronic heart disease with high morbidity and patient impact. A New Drug Application for mavacamten is expected to be submitted to the U.S.... Read More » Illumina Acquires Cancer-Detection Company
Illumina (NASDAQ: ILMN) is making a big bet on the oncology market. The California-based company is acquiring GRAIL for $8 billion, consisting of $3.5 billion in cash and $4.5 billion in shares of Illumina common stock. GRAIL was founded by Illumina in 2016 and was spun out as a standalone company raising $2 billion. The company uses Illumina’s NGS technology to develop data science and machine learning and create the atlas of cancer signals in the blood, enabling multi-cancer early detection tests. Illumina had already owned 14.5% of GRAIL before the deal, and Illumina stockholders are expected to own approximately 93% of the combined company, while GRAIL stockholders are expected to own... Read More » Gilead Bets $21 Billion on Oncology Market
Gilead Sciences, Inc. (NASDAQ: GILD) kicked off this week with a multi-billion acquisition of Immunomedics (NASDAQ: IMMU). The pharmaceutical giant reached an agreement to buy Immunomedics for $21 billion, or $88 per share, a 108% premium to Immunomedics’ closing price on September 11, 2020. Immunomedics generated trailing 12-month revenues of $20.37 million. The deal will be funded through approximately $15 billion in cash on hand, as well as approximately $6 billion in newly issued debt. Immunomedics is a leader in next-generation antibody-drug conjugate (ADC) technology focused on researching therapeutics for hard-to-treat cancers, and is most known for its product Trodelvy, an ADC... Read More » Nestle Health Science Strikes New Multibillion Deal
Nestle Health Science, a global business unit of Nestle S.A. (SWX: NESN), has announced a takeover of California-based Aimmune Therapeutics, Inc. (NASDAQ: AIMT) valued at $2.6 billion. Aimmune Therapeutics is a biopharmaceutical company developing and commercializing oral treatments for potentially life-threatening food allergies. Nestle Health Science previously had a total investment in Aimmune of $473 million, an approximate 25.6% equity ownership stake, and will pay $34.50 per share in cash for the remainder, or a 174% premium to Aimmune’s closing share price on August 28 of $12.60. Aimmune reported a trailing 12-month revenue of $575,000. Nestle Health Science is acquiring... Read More »