Synta Pharma Merges with a New Drug Candidate
Oncology drug maker Synta Pharmaceuticals Corp. (NASDAQ: SNTA) had a run of bad luck in October 2015, when it terminated its GALAXY-2 trial of its lead candidate, ganestespib, and discontinued a substantial portion of its research and development activities related to the compound. Happy news, then, when Synta announced its merger with privately-held Madrigal Pharmaceuticals, whose lead compound, MGL-3196, is a Phase 2-ready, once-daily oral treatment for non-alcoholic steatohepatitis (NASH) and heterozygous and homozygous familial hypercholesterolemia. In the all-stock transaction, valued at $60.9 million, Synta will acquire all outstanding shares of Madrigal in exchange for approximately... Read More »March 2016’s Biggest Health Care Deals
Health care companies are still attracting buyers, and those in the services sectors seem to be the hottest. Last month saw healthy deal volume, at 134 transactions. For a year that started slowly for health care mergers and acquisitions, March 2016’s deal volume is only 3% lower than the same month a year ago. Industry sources have noted the dearth of deals across many industries going into March, even though some uncertainties that troubled markets earlier this year, such as China’s economic slow down, haven’t occupied center stage recently. Leverage is not an overwhelming concern, but credit has tightened over the past few months. And with the new, more onerous federal rules regarding... Read More »Allergan Gets Over Pfizer Breakup Fast
Allergan plc (NYSE: AGN) didn’t let any grass grow under its feet once the breakup with Pfizer Inc. (NYSE: PFE) was official, at 6:45 am ET on April 6th. At 7:30 pm ET the same day, Allergan announced it will partner with Heptares Therapeutics, a wholly owned subisidiary of Sosei Group Corporation (TSE: 4565), to get the exclusive global rights to a broad portfolio of drug candidates targeting major neurological disorders, including Alzheimer’s disease. Heptares receives $125 million upfront, and is eligible to receive contingent milestone payments of up to approximately $665 million associated with the successful Phase 1, 2 and 3 clinical development and laund of the first... Read More »The End of Big Spending in Health Care M&A
No one says, “Follow the synergy.” It’s always the money that matters. So when we heard the U.S. Treasury Department had issued new, more onerous rules on tax inversions on April 4, it was just a matter of time before Pfizer (NYSE: PFE) called off its historic $160 billion takeover of Allergan (NYSE: AGN). And here we are, on April 6, 2016. Now that Pfizer and Allergan have called off their merger, which would have re-domiciled Pfizer in Ireland, we must rework some deal totals. 2015 was a superlative year for health care mergers and acquisitions, thanks in part to this transaction. Yesterday, the annual spending tally was approximately $557 billion across 13 sectors.... Read More »Sun Pharma Buys into Japanese Drug Market
Sun Pharmaceutical Industries Ltd. (BSE: 524715) last week paid $293 million for 14 “established prescription” drug brands currently being marketed by Novartis AG (NYSE: NVS) in Japan. Under terms of the agreement, Novartis will continue to distribute these unidentified brands for a certain period, pending transfer of all marketing authorizations to Sun Pharma’s subsidiary. The acquired brands will then be marketed by an established marketing partner under the Sun Pharma label. This transaction expands Sun’s footprint in Japan’s $73 billion pharmaceutical market. Read More »Schedule a demo
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