August Deal Flow Ebbs, as It Follows the Annual Cycle

August Deal Flow Ebbs, as It Follows the Annual Cycle

by | Sep 9, 2019 1:49 pm | Healthcare Market Updates

Enough about slowdowns and recession. August is typically a roller-coaster month in the equity markets and August 2019 didn’t disappoint in that regard. The bond markets’ inverted yield curve persisted into September and that’s never a good sign. We’re moving on. Preliminary data show August’s deal volume wasn’t so bad, considering how most of 2019 has played out. The 125 deals announced in August represent a drop of 8% compared with the previous month’s 136 deals, and a 27% drop compared with August 2018. After a record-setting year in 2018, with more than 1,900 transactions and $333.3 billion on the books, a repeat would be nearly as scary as a sudden downturn (which may be coming,... Read More »
Big Pharma Deals Aren’t Back, Despite Allergan Deal

Big Pharma Deals Aren’t Back, Despite Allergan Deal

by | Jun 28, 2019 10:19 am | Pharmaceuticals

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 »
Merck Buys Immunotherapy Firm Immune Design

Merck Buys Immunotherapy Firm Immune Design

by | Feb 25, 2019 12:08 pm | Biotechnology, Pharmaceuticals

Merck & Co., Inc. (NYSE: MRK), the global healthcare and pharmaceutical company, has acquired Immune Design (NASDAQ: IMDZ) for $300 million. Merck will buy all outstanding shares of Immune Design at a value of $5.85 per share. With reported revenue of only $2 million, Immune Design’s price tag equals close to a 136x EBITDA multiple. Out of this deal, Merck will gain key intellectual properties from Immune Design: GLAAS and ZVex. These properties can potentially activate the immune system’s natural ability to generate and expand immune cells to fight cancer and other chronic diseases. The acquisition of Immune Design highlights the demand for immunotherapy platforms and... Read More »
Gilead Buys Kite Pharma to Diversify Portfolio

Gilead Buys Kite Pharma to Diversify Portfolio

by | Aug 29, 2017 3:20 pm | Biotechnology, Pharmaceuticals

Gilead Sciences, Inc. (NASDAQ: GILD) finally found a target worth pursuing. The pharmaceutical company, perhaps best known for its high-priced hepatitis-C drugs, Harvoni and Solvadi, placed its bets on Kite Pharma, Inc. (NASDAQ: KITE), hoping to cash in on the biotech’s promising technology for fighting cancer. Gilead announced the acquisition of Kite Pharma for $180.00 per share, valuing the company at approximately $11.9 billion. The price represents a 29% premium to Kite’s closing price on August 25, 2017. Kite Pharma is a clinical-stage biopharmaceutical company that develops and commercializes novel cancer immunotherapy products. It is developing a pipeline of engineered... Read More »