M&A activity in the pharmaceutical sector was focused on cross-border transactions for long term sales growth. In line with the above trend, Abbott Laboratories agreed to acquire CFR Pharmaceuticals, a Chile-based pharmaceutical company, for approximately $3.33 billion. This acquisition would enhance and broaden Abbott’s Latin American footprint. CFR’s product portfolio is well aligned with Abbott’s current pharma therapeutic focus areas in women’s health, central nervous system, cardiovascular and respiratory diseases.
This transaction would improve Abbott’s position in several markets, and provide the opportunity to expand its portfolio across Latin America. In addition, Abbott expects the acquisition to add approximately $900 million to its sales in the first full year (2015), with expected double-digit sales growth over the next several years.
|
M&A (including Private Equity) Trend Analysis
|
| Source: Medtrack |
In another key deal, Santen Pharmaceuticals agreed to acquire ophthalmology assets of Merck, a US-based pharma company, for approximately $600 million. This acquisition would strengthen Santen’s line-up of glaucoma products, and expand its footprint in Japan, Asia and Europe, while allowing it to increase presence in the global ophthalmology market.
Through this transaction, Santen would gain access to Merck’s ophthalmology products: COSOPT, COSOPT PF, TRUSOPT, TRUSOPT PF, TIMOPTIC, TIMOPTIC PF, TIMOPTIC XE, SAFLUTAN and TAPTIQOM in Japan, Europe, and Asia Pacific.
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Top M&A Deals (May 2014)
|
||||
|
Rank
|
Date
|
Target
|
Acquirer
|
Deal value ($m)
|
|
1
|
05/16/14 | CFR Pharmaceuticals S.A. (CL) | Abbott Laboratories (US) |
2900.00
|
|
2
|
05/28/14 | Valeant Pharmaceuticals International, Inc. – aesthetic dermatology assets (CA) | Nestle S.A. (CH) |
1400.00
|
|
3
|
05/08/14 | Chelsea Therapeutics International, Ltd. (US) | H. Lundbeck A/S (DK) |
658.00
|
|
4
|
05/13/14 | Merck Sharp & Dohme Corp. – Ophthalmology Products (US) | Santen Pharmaceutical Co., Ltd. (JP) |
600.00
|
|
5
|
05/09/14 | VersaPharm Incorporated (US) | Akorn, Inc. (US) |
440.00
|
|
6
|
05/12/14 | Lumena Pharmaceuticals, Inc. (US) | Shire plc (IE) |
260.00
|
|
7
|
05/09/14 | Viracor-IBT Laboratories, Inc. (US) | Eurofins Scientific S.A. (BE) |
255.00
|
|
8
|
05/02/14 | Fibrotech Therapeutics Limited (AU) | Shire plc (IE) |
75.00
|
|
9
|
05/06/14 | Frontage Laboratories, Inc. (US) | Hangzhou Tigermed Consulting Co., Ltd. (CN) |
50.25
|
|
10
|
05/16/14 | Proteon Therapeutics, Inc. (US) | Abingworth Management Limited; TVM Capital Life Science; Prism VentureWorks (Prism Venture Management, LLC); Intersouth Partners; Skyline Ventures; MPM Capital; Devon Park Bioventures; Bessemer Venture Partners; Vectis Healthcare and Life Sciences Fund; Deerfield Management Company; Pharmstandard International S.A. |
25.00
|
| Source: Medtrack | ||||
M&A activity in the pharma sector decreased in volume and value terms, when compared to the average of the previous six months’ (Nov 2013 – Apr 2014). According to Datamonitor’s Medtrack database, the pharma sector recorded 25 M&A transactions in May 2014, against the previous six months’ average of 31.8 transactions. In value terms, the sector recorded deals worth $6.7 billion, against the previous six months’ average of $16.1 billion.
The Indian pharma sector witnessed one deal during May 2014, against the average of 0.8 deals over the previous six months, in which US-based Cancer Genetics agreed to acquire BioServe Biotechnologies, an India-based provider of genomic and molecular services, for approximately $1.9 million. This acquisition positions Cancer Genetics to immediately participate in the Indian molecular diagnostics and oncology services market.
|
Figure: Venture Financing Trend Analysis
|
| Source: Medtrack |
Venture Funding
Companies in the pharma sector raised $275.7 million during May 2014, against the previous six months’ average of $310.9 million. In terms of volume, the sector recorded 12 venture funded deals, when compared to the previous six months’ average of 16.5 transactions.
|
Top Venture Financing Deals (May 2014)
|
||||
|
Rank
|
Date
|
Target
|
Investors
|
Deal value ($m)
|
|
1
|
05/27/14 | Spark Therapeutics, LLC (US) | Sofinnova Ventures, Inc.; Brookside Capital; Deerfield Management Company; Rockspring Capital; T. Rowe Price Associates, Inc.; Wellington Management Company, LLP; The Children’s Hospital of Philadelphia; Undisclosed Investors* |
72.80
|
|
2
|
05/19/14 | Coherus Biosciences, Inc. (US) | Kohlberg Kravis Roberts & Co. L.P.; Venrock; RA Capital Management, LLC; Rockspring Capital; Sofinnova Ventures, Inc.; Lilly Ventures; Vivo Capital, LLP; Fidelity Biosciences |
55.00
|
|
3
|
05/28/14 | ARMO BioSciences, Inc. (US) | NanoDimension Management Limited; Kleiner Perkins Caufield & Byers; OrbiMed Advisors, LLC; DAG Ventures |
30.00
|
|
4
|
05/06/14 | Loxo Oncology, Inc. (US) | New Enterprise Associates, Inc. (NEA); Aisling Capital; OrbiMed Advisors, LLC |
24.00
|
|
5
|
05/21/14 | Lysogene (FR) | Sofinnova Partners; InnoBio; Novo Seeds |
22.61
|
| 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