M&A in Pharma Igea Luca Dezzani

Merger and acquisitions in the pharmaceutical industry have been thought to bring significant impact to the current health care system, particularly in developing complex breakthrough medicines that could effectively treat a wide range of debilitating health conditions including cancer and improve health outcomes. According to PricewaterhouseCoopers’ (PwC’s) Health Research Institute, merger mania will be one of the top health industry trends wherein unconventional partnerships are expected to dominate 2016. This means that aside from establishing relationship with other pharmaceutical companies, many will be seeking to acquire beyond-the-pill products and innovations that could potentially boost their company’s profile and provide more consumer touch points. The following will give us the list of the most recent merger and acquisitions in pharma industry:

 

  1. Actavis – Allergan ($70.5 B)

With the aim of creating an unrivaled foundation for long-term growth, Actavis and Allergan decided to establish a partnership that could give approximately $15 billion revenue through several blockbuster franchises in Eye Care, Neurosciences/CNS and Medical Aesthetics/Dermatology/Plastic Surgery. This partnership also includes franchises in world-renowned brands, particularly BOTOX®, RESTASIS®, JUVEDERM®, NAMENDA XR®, LINZESS® and LO LOESTRIN® Fe.

 

  1. Alexion Pharmaceuticals – Synageva Biopharma ($8.4 B)

Last May 2015, Alexion Pharmaceuticals announced its acquisition of Synageva Biopharma to strengthen its leadership towards developing therapies that would benefit patient with devastating and rare diseases. The transaction was valued at $8.4 B which includes expansion of Alexion’s pipeline and innovative products.

 

  1. Astra Zeneca – Acerta Pharma

AstraZeneca announced last February 2, 2016 about the completion of its transaction with Acerta Pharma for an upfront payment of $2.5 billion to obtain franchise of the irreversible oral Bruton’s tyrosine kinase (BTK) inhibitor, acalabrutinib (ACP-196), which is currently under clinical trial.

 

  1. Bristol-Myers Squibb – Cardioxyl Pharmaceuticals, Inc.

The completion of the previously announced Bristol-Myers Squibb’s acquisition of Cardioxyl Pharmaceuticals, Inc. granted the company full rights to Cardioxyl’s lead asset CXL-1427 known to serve as a novel  intravenous treatment for acute decompensated heart failure (ADHF).

 

  1. Abbott Laboratories – Stemcentrx ($9.8 B)

The deal between Abbott Laboratories and Stemcentrx, a prominent cancer stem cell drug developer,  is expected to close this quarter and involves $5.8 billion in cash and stock and a $4 billion payment to Stemcentrx for their product which is still in its early-stage trials and years away from being approved by the regulatory board.

 

  1. Sanofi – Medivation ($9.3 B)

With the $9.3 B bid for Medivation’s approved cancer drug, Canaccord biotech analyst John Newman said that there is a great chance that Sanofi’s offer will be rejected, especially as we see near-term value drivers in prostate and breast cancer for Xtandi.

 

  1. Pfizer – Allergan

In November 2015, Pfizer recently announced partnership with Allergan, a well-know Botox manufacturer, amounting to $160 B and will be considered as the largest health sector deal in history. However, the deal failed due to the recent changes in the US Tax regulations issued by the US treasury that will remove the tax benefits from New York-based Pfizer as they move their base to Ireland.

 

  1. GSK – Qualcomm

Geared towards acquiring beyond-the-pill innovations, GSK is planning to engage in a joint venture with Qualcomm that would amount to $1 B.

 

  1. Novartis – Qualcomm

Novartis announced alliance with Qualcomm to create a cutting-edge version of its inhaler called Breezhaler which will connect the device to Qualcomm Life 2net platform and collect feedback on inhaler usage, particularly the duration of the patient’s inhalation indicative of the quality of inhalation.

 

  1. Teva – Gecko Health Innovations

Through the company’s partnership with Massachusetts’ Gecko Health Innovations, Teva’s endeavor of providing their consumers with smart inhaler has paved the way to the enhancement of the device which connects patients, caregivers and doctors that can potentially improve patient’s adherence to treatment.

Advertisements

One thought on “M&A in Pharma: Best 10 Deals in 2015-16

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s