M&A activity in the pharmaceutical sector was focused on strengthening complementary product portfolios, with antibacterial drugs being the area of focus, as bacterial diseases continue to present a major threat to human health.
In line with the above trend, Cubist Pharmaceuticals agreed to acquire Trius Therapeutics, a US-based biopharmaceutical company, for approximately $818 million. This acquisition is a strategic fit for Cubist that supports its growth and long-range goals, while extending its global leadership in the acute care environment.
This transaction will provide Cubist access to a highly complementary, late-stage antibiotic drug candidate, tedizolid phosphate (TR-701), a novel oxazolidinone drug, which is being developed for both oral and intravenous (IV) administration in the potential treatment of acute bacterial skin and skin structure infections (ABSSSI). It is currently expected that a New Drug Application seeking approval for ABSSSI indication will be submitted to the US Food and Drug Administration (FDA) during the second half of 2013 and a Marketing Authorization Application will be submitted to the European Medicines Agency in the first half of 2014.
| Figure: M&A (including private equity) trend analysis |
| Source: Medtrack |
Further, Cubist also agreed to acquire Optimer Pharmaceuticals, a US-based biopharmaceutical company, for approximately $801 million. This transaction is also a natural fit for Cubist and is well aligned with its strategic goals. With this acquisition, Cubist will gain access to DIFICID, the first antibacterial drug approved in more than 25 years to treat Clostridium difficile-associated diarrhoea (CDAD) in adults of 18 years age or older. In another key deal in the month of July, Perrigo Company agreed to acquire Elan Corporation, an Ireland-based biotechnology company, for approximately $8.6 billion. This acquisition would strengthen Perrigo’s business and financial profile, with highly diversified revenue streams and enhanced cash flows. Also, this transaction creates an opportunity for substantial after-tax annual operating expense and tax savings of more than $150 million to Perrigo.
|
Top M&A Deals (Jul 2013)
|
||||
|
Rank
|
Date
|
Target
|
Acquirer
|
Deal value ($m)
|
|
1
|
07/29/13
|
Elan Corporation, plc (IE) | Perrigo Company (US) |
8600.00
|
|
2
|
07/30/13
|
Trius Therapeutics, Inc. (US) | Cubist Pharmaceuticals, Inc. (US) |
818.00
|
|
3
|
07/30/13
|
Optimer Pharmaceuticals, Inc. (US) | Cubist Pharmaceuticals, Inc. (US) |
801.00
|
|
4
|
07/28/13
|
Rockwood Holdings, Inc. – Rheology business (US) | ALTANA Group (DE) |
635.00
|
|
5
|
07/24/13
|
Epax UK Holding III AS (GB) ; Epax Nutra Holding III AS (NO) | FMC Corporation (US) |
345.00
|
|
6
|
07/12/13
|
Medicago, Inc. (CA) | Mitsubishi Tanabe Pharma Corporation (JP) |
343.42
|
|
7
|
07/31/13
|
Ceptaris Therapeutics, Inc. (US) | Actelion US Holdings Company (US) |
250.00
|
|
8
|
07/15/13
|
Syntaxin, Ltd. (GB) | Ipsen S.A. (FR) |
206.53
|
|
9
|
07/17/13
|
Talon Therapeutics, Inc. (US) | Spectrum Pharmaceuticals, Inc. (US) |
206.30
|
|
10
|
07/10/13
|
National Veterinary Services Limited (GB) | Patterson Companies, Inc. (US) |
130.40
|
| Source: Medtrack | ||||
M&A activity in the pharma sector increased both in volume and value terms, when compared to the average of the previous six months (January – June 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 46 M&A transactions in July 2013, against the previous six months’ average of 31.6 transactions. In value terms, the sector recorded deals worth $12.5 billion against the previous six months’ average of $5.3 billion.
The Indian pharma sector witnessed no deals during July 2013, against the average of one deal over the previous six months.
|
Figure: Venture financing trend analysis
|
| Source: Medtrack |
Venture Funding
Companies in the pharma sector raised $263 million during July 2013, against the previous six months’ average of $187.5 million. In terms of volume, the sector recorded 25 venture funded deals, when compared to the previous six months’ average of 19.5 transactions.
|
Top venture financing deals (July 2013)
|
||||
|
Rank
|
Date
|
Target
|
Investors
|
Deal value ($m)
|
|
1
|
07/29/13
|
aTyr Pharma, Inc. (US) | Alta Partners; Cardinal Partners; Domain Associates, L.L.C.; Polaris Venture Partners |
49.0
|
|
2
|
07/18/13
|
Dermira, Inc. (US) | OrbiMed Advisors, LLC; 5AM Ventures; Versant Venture Management LLC |
30.0
|
|
3
|
07/26/13
|
PolyTherics, Ltd. (GB) | Imperial Innovations; Invesco Perpetual; Mercia Fund Management Ltd; The Advantage Enterprise & Innovation Fund |
20.7
|
|
4
|
07/02/13
|
Shenogen Pharma Group (CN) | Legend Capital; Qiming Weichuang Venture Capital Management (Shanghai) Company, Ltd.; Shenzhen Capital Group Co., Ltd.; Flybridge Capital Partners; China Investment Wealth Venture Fund; Lapam Venture |
20.0
|
|
5
|
07/03/13
|
Sequenta, Inc. (US) | Foresite Capital Management, LLC; Mohr Davidow Ventures; Index Ventures; Undisclosed Investors |
20.0
|
| 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