M&A Activity in the pharmaceutical sector was focused on geographical expansion to create additional growth opportunities. In line with the above trend, Mylan agreed to acquire the non-US developed markets speciality and branded generics business of Abbott Laboratories, a US-based pharmaceutical and healthcare products company, for approximately $5.3 billion. This acquisition will further diversify Mylan’s business and strengthen its commercial platform outside the US, building new opportunities for growth and additional sales channels in the acquired markets. This enhanced commercial platform will help Mylan drive the continued expansion of EpiPen(R) Auto-Injector globally and enable it to more effectively launch important growth drivers, such as respiratory and biologics.
|
Figure: M&A (including Private Equity) Trend Analysis
|
| Source: Medtrack |
In addition, the transaction also provides Mylan with reach in the physician and patient channels in the acquired markets, complementing its reach in pharmacies.
In another key deal, Meda agreed to acquire Rottapharm, an Italy-based consumer healthcare focused branded speciality pharma company, for $3.08 billion. Rottapharm’s presence, with its own sales forces, in Southeast Asia is particularly complementary to Meda, providing additional opportunities to sell Meda’s products in new geographic markets.
This transaction would increase Meda’s consumer healthcare presence and provide a diverse portfolio of brands such as: Dona(R), Saugella(R), ArmoLIPID(R), and Legalon(R). M&A activity in the pharma sector increased in volume and value terms, when compared to the average of the previous six months’ (Jan 2014 – Jun 2014).
|
Top M&A Deals (Jul 2014)
|
||||
|
Rank
|
Date
|
Target
|
Acquirer
|
Deal Value ($m)
|
|
1.
|
07/18/14 | Shire plc (IE) | AbbVie, Inc. (US) |
54659.80
|
|
2.
|
07/14/14 | Abbott Laboratories – Generics Business | Mylan, Inc. (US) |
5300.00
|
|
3.
|
07/31/14 | Rottapharm SpA (IT) | Meda AB (SE) |
3084.67
|
|
4.
|
07/01/14 | Seragon Pharmaceuticals, Inc. (US) | Genentech, Inc. (US) |
1725.00
|
|
5.
|
07/30/14 | Baxter International, Inc. – Commercial Vaccines Business (AT) | Pfizer, Inc. (US) |
635.00
|
|
6.
|
07/11/14 | Archimedes Pharma Limited (UK) | ProStrakan Group plc (UK) |
387.95
|
|
7.
|
07/16/14 | InnoPharma, LLC (US) | Pfizer, Inc. (US) |
360.00
|
|
8.
|
07/28/14 | Penn Pharmaceutical Services Limited (UK) | Packaging Coordinators, Inc. (US) |
215.65
|
|
9.
|
07/02/14 | Aciex Therapeutics, Inc. (US) | NicOx S.A. (FR) |
120.00
|
|
10.
|
07/14/14 | Phlexglobal, Ltd. (UK) | Bridgepoint Development Capital (UK) |
71.92
|
| Source: Medtrack | ||||
According to Datamonitor’s Medtrack database, the pharma sector recorded 33 M&A transactions in July 2014, against the previous six months’ average of 30.6 transactions.
In value terms, the sector recorded deals worth $66.7 billion, against the previous six months’ average of $16.4 billion. The Indian pharma sector witnessed two deals in Jul 2014, against the average of 0.6 deals over the previous six months.
Notable among them is Strides Arcolab’s acquisition of majority stake in India branded generics business of Bafna Pharmaceuticals for $8 million. This acquisition would strengthen the women and child care portfolio of Strides’ branded generics business and provide necessary impetus to its domestic branded generics business. The transaction would strengthen Strides’ reach to newer markets with a wider portfolio of products.
|
Figure: Venture Financing Trend Analysis
|
| Source: Medtrack |
Venture funding
Companies in the pharma sector raised $106.1 million during July 2014, against the previous six months’ average of $260.4 million. In terms of volume, the sector recorded 13 venture funded deals, when compared to the previous six months’ average of 13.8 transactions.
|
Top Venture Financing Deals (Jul 2014)
|
||||
|
Rank
|
Date
|
Target
|
Investors
|
Deal Value ($m)
|
|
1.
|
07/28/14 | PaxVax, Inc. (US) | Pharmakon Advisors, LP; Undisclosed Investors |
62.00
|
|
2.
|
07/30/14 | Cold Genesys, Inc. (US) | Ally Bridge Group (UK) |
13.57
|
|
3.
|
07/16/14 | Virobay, Inc. (US) | Perceptive Advisors LLC; TPG Biotechnology Partners, LP; Alta Partners; Sutter Hill Ventures; AbbVie, Inc. |
8.00
|
|
4.
|
07/15/14 | amcure GmbH (DE) | LBBW Venture Capital GmbH; KfW Group (Kreditanstalt fur Wiederaufbau); MGB Mittelstandische Beteiligungsgesellschaft Baden-Wurttemberg GmbH (MBG medium-sized investment company Baden – Wurttemberg); BioM AG; S-Kap Beteiligungen Pforzheim; Undisclosed Investors |
6.81
|
|
5.
|
07/14/14 | Xagenic, Inc. (CA) | BDC Capital; Undisclosed Investors |
5.12
|
| Source: Medtrack | ||||
Part III: Notes
Medtrack is a comprehensive, fully integrated, global biomedical database providing information on companies, products, patents, deals, venture financing, and epidemiology. It is a live database, constantly updated with news, milestones, trial information, etc. Medtrack’s unmatched coverage is supported by a user-friendly, highly dynamic set of decision support tools and analytics. In-house analysts and researchers add key insights and conclusions to provide you with the primary and secondary information you need.
Key uses of the database include competitive intelligence, target identification, screen potential licensing and investment opportunities, patent assessments, product due diligence, royalty valuations, and developmental benchmarking.
For more information, visit us at www.medtrack.com
Definitions:
1. Deal value trend is based on transactions where associate values have been disclosed.
2. Trend analysis excludes rumored and terminated deals.
3. Value and volume analysis excludes private equity exits.