M&A activity in the pharmaceutical sector was focused on speciality pharma segment, to accelerate growth, by acquiring blockbuster franchises.
In line with the above trend, Actavis agreed to acquire Forest Laboratories, a US-based speciality pharma company, for approximately $25 billion. This transaction would expand Actavis’ North American speciality portfolio with blockbuster product franchises in the CNS, gastroenterology, women’s health, urology and cardiovascular therapeutic categories. The combined businesses will have emerging and sustainable portfolios in infectious disease, respiratory, cystic fibrosis and dermatology therapeutic categories.
| Figure: M&A (including private equity) trend analysis |
| Source: Medtrack |
This acquisition would allow Actavis to create a new business model, with size and scale, a balanced offering of strong brands and generics, a focus on strategic and lower-risk drug development, to drive organic growth.
In addition, Actavis will gain access to more than half-a-dozen near and mid-term Forest Laboratories’ R&D products among which, five products are at the NDA stage of development. Forest Laboratories’ current position in primary care sales will allow Actavis to leverage its specialty brands portfolio to a broader physician base in the US.
|
Top M&A deals (Feb 2014)
|
||||
|
Rank
|
Date
|
Target
|
Acquirer
|
Deal value ($m)
|
|
1
|
02/18/14 | Forest Laboratories, Inc. (US) | Actavis plc (IE) |
25000.00
|
|
2
|
02/11/14 | Cadence Pharmaceuticals, Inc. (US) | Mallinckrodt plc (US) |
1300.00
|
|
3
|
02/24/14 | Medpace, Inc. (US) | Cinven Limited; CCMP Capital Advisors, LLC |
915.00
|
|
4
|
02/03/14 | Precision Dermatology, Inc. (US) | Valeant Pharmaceuticals International, Inc. (CA) |
500.00
|
|
5
|
02/10/14 | Melinta Therapeutics, Inc. (US) | Vatera Healthcare Partners; Undisclosed Investors*;Falcon Flight, LLC |
70.00
|
|
6
|
02/18/14 | NovImmune SA (CH) | Rosetta Capital Limited; Undisclosed Investors*;Falcon Flight, LLC |
67.31
|
|
7
|
02/17/14 | Advanced Accelerator Applications, s.a. (FR) | HBM Healthcare Investments Ltd; Tamburi Investment Partners S.p.A.; Undisclosed Investors*;Falcon Flight, LLC |
56.15
|
|
8
|
02/27/14 | Bioniche Animal Health Canada Inc. (CA) | Vetoquinol SA (FR) |
54.98
|
|
9
|
02/12/14 | Arjun Products Limited; The Specials Laboratory Holdings Limited; Craig & Hayward Limited | Professional Compounding Centers of America (US) |
38.61
|
|
10
|
02/28/14 | Transition Therapeutics, Inc. (CA) | Perrigo Company plc (IE) |
15.00
|
| Source: Medtrack | ||||
In another key deal, Mallinckrodt agreed to acquire Cadence Pharmaceuticals, a US-based biopharmaceutical company, for approximately $1.3 billion. This transaction is in line with Mallinckrodt’s business strategy and accelerates growth in Mallinckrodt’s Specialty Pharmaceuticals segment.
With this acquisition, Mallinckrodt will gain access to OFIRMEV, a pain therapeutic. Since its introduction, OFIRMEV has experienced strong growth, and Cadence expects net revenues of $110.5 million for OFIRMEV in calendar year 2013, compared to 2012 net product revenues of $50.1 million.
M&A activity in the pharma sector decreased in volume and increased in value terms, when compared to the average of the previous six months (Aug 2013 – Jan 2014). According to Datamonitor’s Medtrack database, the pharma sector recorded 25 M&A transactions in February 2014, against the previous six months’ average of 32 transactions. In value terms, the sector recorded deals worth $28 billion, against the previous six months’ average of $6.7 billion.
The Indian pharma sector witnessed no deals during February 2014, against the average of 0.8 deals over the previous six months.
Venture funding
| Figure: Venture financing trend analysis |
| Source: Medtrack |
Companies in the pharma sector raised $142.8 million during February 2014, against the previous six months’ average of $254.1 million. In terms of volume, the sector recorded 15 venture funded deals, when compared to the previous six months’ average of 18.3 transactions.
|
Top venture financing deals (Feb 2014)
|
||||
|
Rank
|
Date
|
Target
|
Investors
|
Deal value ($m)
|
|
1
|
02/18/14 | Versartis, Inc. (US) | Sofinnova Ventures, Inc.; Aisling Capital; New Leaf Venture Partners; Advent Life Sciences Fund; Undisclosed Investors* |
55.00
|
|
2
|
02/24/14 | Thesan Pharmaceuticals, Inc. (US) | Novo Ventures; SV Life Sciences; Lundbeckfond Ventures; Novartis Venture Funds |
49.00
|
|
3
|
02/13/14 | Pronutria (US) | Flagship Ventures; Undisclosed Investors* |
12.25
|
|
4
|
02/14/14 | REGiMMUNE Corporation (JP) | Japan Asia Investment Co., Ltd.; Nippon Venture Capital Co., Ltd.; Mizuho Capital Co., Ltd.; Nissei Insurance; Mitsui Sumitomo Insurance Co., Ltd.; SMBC Venture Capital Co., Ltd.; Mitsubishi UFJ Bank Capital |
9.20
|
|
5
|
02/11/14 | Lithera (US) | Alta Partners; Domain Associates, L.L.C.; AKS Capital; Undisclosed Investors |
8.00
|
| Source: Medtrack | ||||
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.
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