Deal of the Week: Takeda/TiGenix
Japanese pharmaceutical giant Takeda Pharmaceutical Company Limited (TSE: 4502) declared its intention to acquire 100% of the voting rights it doesn’t already own in the Dutch biotechnology company TiGenix NV (NASDAQ: TIG). Takeda is offering $627 million in cash, representing an 82% premium over TiGenix’s closing price prior to the date when the news of the deal broke. On January 5, 2018, the day the news broke, TIG stock shot up nearly 71%, to $40.75. TiGenix is an advanced biopharmaceutical company focused on exploiting the anti-inflammatory properties of allogeneic, or donor-derived, stem cells. Upon the acquisition, TiGenix will become a subsidiary of Takeda. The... Read More »
Pharmaceutical Deals Took a Dive in 2017
On the eve of the 36th annual J.P. Morgan Healthcare Conference, it’s only fitting to take a look at where pharmaceutical deals ended up at the end of 2017. Suffice to say, at a record low deal volume. Preliminary data show just 96 transactions for pharmaceutical targets were announced last year, the first time pharma deals have notched a two-digit deal volume since 2001 (87 deals then). That marks a 38% decline from 2016’s 156 transactions, and a 49% drop from the most recent high-mark of 188 deals announced in 2014. Spending was also anemic, with just $28.1 billion committed to finance those deals. That’s 67% below last year’s $84.8 billion, and 87% lower than the... Read More »
Stat of the Week: Healthcare M&A Spending up 18% in 2017
The year hasn’t ended, and there are still two weeks to go in the fourth quarter of 2017. The holidays are already under way, with more on the horizon. Before we get too busy, here’s a quick look at where things stand in mid-December. Total healthcare mergers and acquisitions reached 1,467 deals as of December 14. That’s only 7% lower than the combined total for all of 2016, at 1,574 deals. Spending on these transactions is already higher. This year’s dollar volume currently stands at approximately $303.9 billion, up 18% compared with last year’s total of $256.7 billion. Much of the credit for the spending rise goes to the largest single transaction announced... Read More »
CVS, Aetna Lead a Potential Big-Deal Parade
The fourth quarter, and the month of December in particular, are usually busy times for mergers and acquisitions, and often when big deals are announced. With one month to go in Q4:17, the pace may be picking up. Deal volume through December 1 stood at 231 transactions (-39% to last year’s 379), and $19.6 billion (-49% vs. $38.6 billion in Q4:16). But late on December 3, CVS Health (NYSE: CVS) and managed care giant Aetna (NYSE: AET) announced their $69 billion merger. More mega-deals are in the offing. Possibly. The CVS/Aetna deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and... Read More »
Deal of the Week: Melinta/The Medicines Co.’s Antibiotics
As part of a previously announced restructuring plan, The Medicines Company (NASDAQ: MDCO) is selling its infectious disease business unit in order to double-down on its promising drug candidate, inclisiran. The drug is currently in Phase 3 development, and completion is expected in the second half of 2019. That’s a long way away, and MDCO needs “sufficient cash and liquidity” to reach the goal line. That’s why, on November 29, the company announced an agreement to sell its infectious disease business unit, including three marketed antibiotics, Vabomere, Orbactiv® and Minocin IV. Melinta Therapeutics, Inc. (NASDAQ: MLNT), the buyer, will pay $540 million, as well as... Read More »Schedule a demo
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