M&A activity in the pharmaceutical sector was focused on strengthening product portfolios with a focus on cancer therapeutics, as cancer is a leading cause of death worldwide and the total number of cases is globally increasing. According to World Health Organization, the number of global cancer deaths is projected to increase 45 per cent from 2007 to 2030 (from 7.9 million to 11.5 million deaths), influenced, in part, by an increasing and aging global population. New cases of cancer in the same period are estimated to jump from 11.3 million in 2007 to 15.5 million in 2030.
In line with the above trend, Amgen agreed to acquire Onyx Pharmaceuticals, a US-based biopharmaceutical company, for approximately $10.4 billion. This acquisition is fully consistent with Amgen’s strategy of advancing innovative medicines that address serious unmet medical needs and Amgen expects this acquisition will accelerate growth and enhance value for shareholders.
| Figure: M&A (including private equity) trend analysis |
| Source: Medtrack |
With this acquisition, Amgen will benefit from the global rights to Onyx’s innovative oncology portfolio and pipeline. Amgen will gain access to an important and growing multiple myeloma franchise, with Kyprolis (carfilzomib) for Injection, already approved in the US. Amgen intends to leverage its oncology capabilities and experience to support Onyx’s clinical development programmes and maximise Kyprolis’ potential in the US and the rest of the world.
The acquisition of Onyx also adds to Amgen’s robust late-stage pipeline. This pipeline includes nine innovative products for which registration-enabling data are anticipated by 2016. Four of these are innovative, first-in class oncology products. Onyx’s pipeline complements Amgen’s growing oncology portfolio.
In another key deal, MedImmune agreed to acquire Amplimmune, a US-based biologics company, for approximately $500 million. This acquisition significantly strengthens the AstraZeneca and MedImmune portfolio, enabling the pursuit of the most effective data-driven combinations of IMT-C molecules, as well as combinations with highly targeted small molecules.
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Top M&A deals (Aug 2013)
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||||
|
Rank
|
Date
|
Target
|
Acquirer
|
Deal value ($m)
|
|
1
|
08/25/13 | Onyx Pharmaceuticals, Inc. (US) | Amgen, Inc. (US) |
10400.00
|
|
2
|
08/27/13 | Hi-Tech Pharmacal Co., Inc. (US) | Akorn, Inc. (US) |
640.00
|
|
3
|
08/26/13 | Amplimmune, Inc. (US) | MedImmune, LLC (US) |
500.00
|
|
4
|
08/16/13 | Thornton & Ross Limited (GB) | STADA Arzneimittel AG (DE) |
344.00
|
|
5
|
08/28/13 | Boca Pharmacal, Inc. (US) | Qualitest Pharmaceuticals, Inc. (US) |
225.00
|
|
6
|
08/30/13 | Acton Pharmaceuticals, Inc. (US) | Meda AB (SE) |
145.00
|
|
7
|
08/26/13 | Argos Therapeutics, Inc. (US) | Green Cross Corporation; Forbion Capital Partners; TVM Capital Group; Lumira Capital Corp; Intersouth Partners; Morningside Group (Holdings) Limited; The Aurora Funds, Inc.; Caisse de depot et placement du Quebec; Pharmstandard International S.A. |
42.50
|
|
8
|
08/13/13 | Hwail Pharma Co., Ltd. (KR) | CrystalGenomics, Inc. (KR) |
42.08
|
|
9
|
08/01/13 | Liaoning Baifeng (KR) | Daewoong Pharmaceutical Co., Ltd. (CN) |
16.04
|
|
10
|
08/01/13 | Expansis (ES) | United Drug Plc (IE) |
15.92
|
| Source: Medtrack | ||||
With this transaction, MedImmune will gain access to multiple early-stage assets for its immune-mediated cancer therapy (IMT-C) portfolio, including AMP-514, an anti-programmed cell death 1 (PD-1) monoclonal antibody (mAb). AMP-514 is currently in late-stage pre-clinical development with an aim to file an investigational new drug (IND) before the end of 2013. Other Amplimmune assets include multiple preclinical molecules, targeting the B7 pathways.
M&A activity in the pharma sector decreased in volume terms and increased in value terms, when compared to the average of the previous six months (February – July 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 30 M&A transactions in August 2013, against the previous six months’ average of 32.8 transactions. In value terms, the sector recorded deals worth $12.4 billion, against the previous six months’ average of $7.1 billion.
The Indian pharma sector witnessed no deals during August 2013, against the average of 0.6 deals over the previous six months.
|
Figure: Venture financing trend analysis
|
| Source: Medtrack |
Venture funding
Companies in the pharma sector raised $111.6 million during August 2013, against the previous six months’ average of $211.6 million. In terms of volume, the sector recorded five venture funded deals, when compared to the previous six months’ average of 21.1 transactions.
|
Top venture financing deals (Aug 2013)
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||||
|
Rank
|
Date
|
Target
|
Investors
|
Deal value ($m)
|
|
1
|
Aug 1, 2013 | Dicerna Pharmaceuticals, Inc. (US) | RA Capital Management, LLC; Brookside Capital; Omega Funds; Domain Associates, L.L.C.; Oxford Bioscience Partners; Skyline Ventures; SR One; Deerfield Management Company; Abingworth Management Limited |
60.00
|
|
2
|
Aug 27, 2013 | Syndax Pharmaceuticals, Inc. (US) | Domain Associates, L.L.C.; MPM Capital; RusnanoMedInvest; Forward Ventures |
26.60
|
|
3
|
Aug 22, 2013 | MicuRx Pharmaceuticals, Inc. (US) | BioVeda China Fund; Morningside Group (Holdings) Limited; Devon Park Bioventures |
25.00
|
| Source: Medtrack | ||||
Notes and Definitions
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.
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.
For more information, visit us at www.medtrack.com