Cancer Treatments Are Driving Biopharmaceutical M&A

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 »

MCOs Make Deals to Combat High Drug Costs

The rising cost of prescription drugs was part of many candidates’ campaign platforms in the 2016 national elections. The topic has not gone away, and is certainly a factor in the dearth of Big Pharma deals in 2017.  Through June 15, M&A in the Pharma sector is down 43%, to 44 transactions, compared with the same period in 2016, which had 77 transactions. Spending is also down in for the first six months of 2017. Through June 15, acquirers announced $19.2 billion in committed financing, down 66% from the same period in 2016, when approximately $56.5 billion was spent. There are deals being done, regarding this issue, but most are not M&A. In fact, several managed care... Read More »

Generic Drug Deals Are Getting Rarer

The patent cliff is boosting the volume and market share of generic pharmaceutical products. Generics account for 88% of all prescriptions filled annually in the United States, according to the latest IMS Report. For good reason, since generic drugs typically cost between 50% to 70% less than their branded equivalents. Governments and managed care companies have historically been proponents of generic drugs, which can lower the cost of healthcare across the entire continuum. 2015 was the year of the M&A boom in the generic drug segment, with 25 deals totaling $64.8 billion. The targets include the companies focused on generic pharmaceuticals as well as the rights to generic... Read More »

Fresenius Injects $5.1 Billion into its U.S. Pharma Unit

Fresenius Medical Care AG & Co. KGaA (NYSE: FMS) has been a busy deal maker. In 2016, its subsidiary Fresenius Helios bought the Spanish hospital chain Quironsalud for $6.5 billion, its Renal Care division acquired the rights to a chronic kidney disease drug for up to $282 million, and then a German-based cardiovascular medical device company for an undisclosed price. The company also picked up dialysis clinics throughout India and New York State, and other drug licenses in the meantime. Now, it has turned its attention to strengthening Fresenius Kabi, its sterile injectable medicines subsidiary. Biosimilars are a fast-growing segment within the pharmaceutical market, and some of the... Read More »

Perrigo Lets Go of Tysabri Royalties

What goes around comes around. It doesn’t seem that long ago that the Dublin-based drug firm Elan Corporation plc was fighting off the hostile advances of Royalty Pharma. It was July 2013, in fact, when Elan agreed to be acquired by Perrigo (NYSE: PRGO) for $8.6 billion. To refresh the memory, Elan was a biotech company whose portfolio included royalties from Tysabri®, a multiple sclerosis treatment, and a neuropsychiatric pipeline with near-term value creation potential.  Early February 2013, Elan sold half of its rights to Tysabri to Biogen Idec, now known as Biogen Inc. (NASDAQ: BIIB), for $3.25 billion. At the time, the terms called for $3.25 billion upfront cash plus 12% of... Read More »