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 »

Pharma Deals Slid in Q1:17

Deal making in the pharmaceutical sector slid further in the first quarter, down 12% to 29 deals, compared with the previous quarter, and down 28% compared with the same quarter a year ago. This quarter’s deal volume accounts for 20% of the 145 deals announced in the previous 12 months. President Trump has continued to malign this sector in social media tweets and in public speeches for the high price of some drugs, so it’s not surprising to see M&A slacking off, for the time being. Also, drug makers’ attention is directed toward their aging product pipelines, and most of the deal activity is going to acquire the rights to promising mid- and late-phase drug candidates. Source:... Read More »

Pharmaceutical Deals Celebrate the New Year

The Pharmaceutical sector hasn’t wasted any time getting busy in the New Year. As of January 18, 2017, 10 pharma deals have been announced, with disclosed prices totaling $7.18 billion. Of course, the annual JP Morgan Healthcare Summit, held this year from January 9 to January 13, helped to boost the announcements. The largest deal so far was Takeda Pharmaceutical Co. Ltd.’s (OTCQB: TKPYY) $4.67 billion ($24.00 per share) takeover of ARIAD Pharmaceuticals Inc. (NASDAQ: ARIA). ARIAD is an oncology company that discovers, develops and commercializes drugs for patients with rare cancers. A large motivator for the deal was to gain access to Iclusig® (ponatinib), a globally commercialized... Read More »

First Half of 2016 Shows Strength in M&A

Ever since the rally in health care mergers and acquisitions began in 2014, we’ve been waiting for the inevitable slam-on-the-brakes quarter. That rally was sparked by the advent of newly insured families and individuals entering the healthcare market, beginning on January 1, 2014. Thanks to the Affordable Care Act, passed in 2010, health care M&A topped 1,000 transactions that year and has never looked back. Isn’t it about time for the party to end? Not according to our data for the first six months of 2016, compared with the same period in 2014 and 2015. (But if you read our monthly M&A roundup on page 18, you may have second thoughts.) In the first half of 2016, deal volume... Read More »

Takeda’s triple transactions

Takeda Pharmaceutical Company Ltd. (OTCQB: TKPYY) has been busy bolstering its role as a global leader in gastroenterology. On June 8, 2016, Takeda dished out $15 million for Theravance Biopharma’s (NASDAQ: TBPH) license to TD-8954, a selective 5-HT4 receptor agonist being investigated for potential use in gastrointestinal motility disorders, including enteral feeding intolerance. Less than a month later, Takeda bought the rights to develop ATC-1906  from Altos Therapeutics for an undisclosed amount. ATC-1906 is currently in Phase 1 studies for the treatment of gastroparesis and its symptoms. Then, just four days later, on July 5 2016, Takeda paid approximately $28 million to TiGenix N.V.... Read More »