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 »
2019’s Biggest Healthcare Deals, by Sector
2020 has just begun, which means it’s time to look back at the healthcare M&A landscape of 2019. Just three days into the new year, nearly 1,780 deals are already on the books for 2019. More deals will turn up as we search our many sources, but the number likely won’t top the record of 1,900-plus set in 2018. Thanks to the multi-billion-dollar deals announced in the Biotech and Pharmaceutical sectors, 2019 will set a new spending record. Preliminary data show $399.1 billion was spent on healthcare acquisitions last year, about 20% higher than in 2018. We expect that number to rise as we go through the year and the 10Ks and quarterly reports come out. It’s possible the... Read More »
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 » AstraZeneca Divests More of Seroquel
Piece by piece, AstraZeneca (NYSE: AZN) continues to divest the rights of Seroquel and Seroquel XR (Seroquel), a prescription drug for schizophrenia and bipolar, in various major markets. It used to be a big seller for the pharmaceutical giant over the years but has since declined considerably after the FDA approved a generic version of the drug in May 2017. In 2017, Seroquel recorded sales of $332 million, representing a year-over-year decline of 55%. As a result, AstraZeneca has found buyers to take the drug off their portfolio. However, it also gives AstraZeneca the opportunity to focus on its three main therapy areas of oncology, cardiovascular, renal & metabolism, and respiratory.... Read More »
Big Pharma Is Back in the Headlines
It looks like some big pharma companies want to get their holiday shopping done early this year. Two transactions with values north of $1 billion were announced in late November, stimulating a sector that’s been relatively quiet the past few months. The first might not come as a surprise since it’s been circling the rumor mill for some time. Novartis AG (NYSE: NVS) announced the acquisition of The Medicines Company (NASDAQ: MDCO) for $9.7 billion, or $85 per share. The deal value is comprised of a 24% premium over MDCO’s November 22, 2019 closing price of $68.55, as well as the company’s outstanding stock options and convertible debt. MDCO is focused on treating... Read More »