Big Pharma Deals Aren’t Back, Despite Allergan Deal
The last round of Big Pharma mergers and acquisitions peaked in 2014 and ran out of steam in 2016. In 2014, the sector set a record of 188 deals (+25% yoy) and another record for spending, at $213.3 billion (+221% yoy). 2014 was the year Dublin-based Actavis plc (then NYSE: ACT) acquired Allergan, Inc. (NYSE: AGN) for $66 billion, and changed its name to Allergan plc. At the time, the Irvine, California-based company was fighting a hostile takeover by Canadian drug maker Valeant Pharmaceuticals International (now known as Bausch Health Companies – NYSE: BHC). The original price was a combination of $129.22 in cash and 0.3683 Actavis shares for each share of AGN common stock. Based on... Read More »
Another Cancer Treatment Startup for Merck
Merck & Co., Inc. (NYSE: MRK) has been busy this year. After securing a licensing deal with Cocrystal (NASDAQ: COCP) for proprietary influenza A/B antiviral agents in January, the company found two biotechnology start-ups to bolster its cancer treatment portfolio. First, in February Merck bought Immune Design for $5.85 per share in cash, for an approximate value of $300 million (135.8x trailing 12-month revenue). The target company is a late-stage immunotherapy company employing in-vivo approaches to enable the body’s immune system to fight disease. Through this acquisition, Merck gained Immune Design’s proprietary technologies, GLAAS and ZVex, which are engineered to... Read More »
Advanced Wound Care Firm Acelity Grabbed for $6.7 Billion
3m Company (NYSE: MMM), the global conglomerate, announced in early May it purchased Acelity Inc. for $6.7 billion, or roughly 11.4x EBITDA. The target is a medical device consortium comprised of Apax Partners, affiliates of Canada Pension Plan Investment Board and the Public Sector Pension Investment Board, is selling Acelity. Acelity develops advanced wound care products and specialty surgical applications marketed under the KCI brand name. The company reported a revenue of $1.5 billion in 2018. This acquisition bolsters 3M’s Medical Solutions business and supports its growth strategy to offer comprehensive advanced and surgical wound care solutions. The transaction is expected to... Read More »
Xiidra, Dry Eye Treatment Drug, Acquired by Novartis
The global pharmaceutical giant Novartis (NYSE: NVS) bought the assets to Xiidra 5% solution from Takeda Pharmaceutical Company (NYSE: TAK). The announcement gives us the largest pharmaceutical deal of the year so far, with Novartis paying $3.4 billion upfront and $1.9 billion in potential milestones for the drug. In 2018, Xiidra generated revenue of $400 million. Xiidra is the first and only prescription treatment approved for both signs and symptoms of dry eye by inhibiting inflammation caused by the disease. This acquisition fits strategically within Novartis’ ophthalmic pharmaceutical portfolio, laying the groundwork for front-of-the-eye pipeline products currently in... Read More »
Misonix Buys TheraSkin Maker Solsys Medical
Misonix, Inc., (NASDAQ: MSON) an international surgical device manufacturer, has acquired the pharmaceutical company Solsys Medical, LLC. The target company markets TheraSkin, a cellular and tissue-based product for regenerative wound healing, especially for difficult-to-heal chronic wounds. TheraSkin has been applied to more than 100,000 wounds supported by multiple clinical studies. The deal will cost Misonix a total of $117 million, comprised of $97 million in stock plus Solsys’ $20 million outstanding secured debt. As part of the deal, Misonix will issue 5.7 million new shares. Upon closing, it will own 64% of the company and Solsys unitholders will own 36%. Misonix hopes to get... Read More »Schedule a demo
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