M&A activity in August records 58 transactions worth $15 bn

The top two transactions recorded in August 2017 were related to oncology assets and accounted for about 88 per cent of the total activity in value terms

M&A activity in the pharmaceuticals and healthcare industry was focused on oncology assets. The top two transactions recorded in August 2017 were related to oncology assets and accounted for about 88 per cent of the total activity in value terms. In volume terms, the M&A activity during the month witnessed a marginal increase of 7 per cent when compared to July 2017 and 9 per cent over the average of previous five months. In value terms though, the increase was 61 per cent over the five-month average. August recorded a total of 58 transactions worth $15 billion. One of the major deals in August includes Gilead Sciences’ definitive agreement to acquire Kite Pharma, a biopharmaceutical company engaged in the development of cancer immunotherapies, for purchase consideration of approximately $11.9 billion.

M&A deal activity was focused on oncology assets

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Gilead Sciences’ offer price represents a 29 per cent premium to Kite Pharma’s closing price on August 25, 2017 and a 50 per cent premium to its 30-day volume weighted average stock price. The transaction is expected to help Gilead to strengthen its position in oncology and cell therapy. Some other notable transactions in August include Bristol-Myers Squibb’s proposed acquisition of IFM Therapeutics for $1.3 billion; Mallinckrodt’s proposed acquisition of InfaCare Pharma for up to $425 million; and CSL Behring’s proposed acquisition of Calimmune for $416 million.

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The venture capital (VC) market recorded a decrease, in both deal volume and value terms, with 51 deals worth $747.4 million in August as compared to 70 deals worth $945.4 million in the previous month. Some of the notable VC deals in August include  Homology Medicines raising $83.5 million in series B financing round, ARMO Biosciences raising $67 million in series C-1 financing round, and CF PharmaTech raising $65 million in series D financing round.