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M&A (including private equity) trend analysis
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| Source: Medtrack |
Portfolio transformation through asset swapping was the core focus of companies M&A activity, in the month of April, 2014. In line with the above trend, Switzerland-based Novartis, announced a three-part portfolio transformation transaction with GlaxoSmithKline (GSK), a UK-based healthcare company, to exchange certain assets.
As part of the above, the first transaction involves Novartis agreeing to acquire oncology products of GSK for approximately $16 billion. This acquisition will allow Novartis to strengthen its oncology business with new therapies. The addition of GSK’s products would expand Novartis’ position in targeted therapies and small molecules.
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Top M&A deals (Apr 2014)
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Rank
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Date
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Target
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Acquirer
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Deal value ($m)
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|
1
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Apr 22, 2014 | GlaxoSmithKline plc – Oncology Business (GB) | Novartis AG (CH) |
16,000.00
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2
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Apr 22, 2014 | Novartis AG – Vaccines Business (CH) | GlaxoSmithKline plc (GB) |
7,050.00
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3
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Apr 07, 2014 | Questcor Pharmaceuticals, Inc. (US) | Mallinckrodt, Inc. (US) |
5,600.00
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|
4
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Apr 22, 2014 | Novartis Animal Health, Inc. (CH) | Eli Lilly and Company (US) |
5,400.00
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|
5
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Apr 06, 2014 | Ranbaxy Laboratories Limited (IN) | Sun Pharmaceutical Industries Limited (IN) |
4,000.00
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|
6
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Apr 28, 2014 | Furiex Pharmaceuticals, Inc. (US) | Forest Laboratories, Inc. (US) |
1,100.00
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|
7
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Apr 25, 2014 | Insight Pharmaceuticals Corp. (US) | Prestige Brands Holdings, Inc. (US) |
750.00
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|
8
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Apr 29, 2014 | iPierian, Inc. (US) | Bristol-Myers Squibb Company (US) |
725.00
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|
9
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Apr 24, 2014 | Andromeda Biotech, Ltd. (IL) | Hyperion Therapeutics, Inc. (US) |
570.51
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10
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Apr 01, 2014 | Intarcia Therapeutics, Inc. (US) | RA Capital Management, LLC; Farallon Capital Management,L.L.C.; Foresite Capital Management, LLC; Fred Alger Management, Inc. (Alger); New Leaf Venture Partners; Quilvest Ventures; New Enterprise Associates, Inc. (NEA); Venrock; The Baupost Group, LLC; Franklin Templeton, LLC |
200.00
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| Source: Medtrack | ||||
In the second transaction, GSK agreed to acquire the vaccines business (excluding influenza vaccines) of Novartis for approximately $7.05 billion. This acquisition will improve GSK’s position in global vaccines business. The addition of Novartis’ Bexsero and MenABCWY will strengthen the breadth of GSK’s portfolio, notably in meningitis. Besides, it would also strengthen GSK’s manufacturing network and increase overall capacity, notably with the addition of Novartis’ secondary packaging and supply facilities in Rosia, Italy and Marburg, Germany.
In the third transaction, Novartis and GSK agreed to create a leading consumer healthcare business through a joint venture between Novartis OTC and GSK Consumer Healthcare. GSK will have a 63.5 per cent equity interest in the joint venture company, while the remaining 36.5 per cent interest will be held by Novartis. GSK will assume control of Novartis’ OTC manufacturing network. This includes Novartis’ facility in Lincoln, Nebraska.
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Venture financing trend analysis
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| Source: Medtrack |
M&A activity in the pharma sector increased in volume and value terms, when compared to the average of the previous six months (October 2013 – March 2014). According to Datamonitor’s Medtrack database, the pharma sector recorded 32 M&A transactions in April 2014, against the previous six months’ average of 32.6 transactions. In value terms, the sector recorded deals worth $41.9 billion, against the previous six months’ average of $9.3 billion.
The Indian pharma sector witnessed one deal during April 2014, against the average of 0.8 deals over the previous six months, in which Sun Pharmaceutical Industries agreed to acquire Ranbaxy Laboratories, an India-based pharmaceutical company, for approximately $4 billion. This acquisition provides Sun Pharmaceuticals with a strong complementary platform in high-growth emerging markets.Companies in the pharma sector raised $603.7 million during Apr 2014, against the previous six months’ average of $278 million. In terms of volume, the sector recorded 20 venture funded deals, when compared to the previous six months’ average of 18.5 transactions.
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Top venture financing deals (Apr 2014)
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Rank
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Date
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Target
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Investors
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Deal value ($m)
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1
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Apr 07, 2014 | Adaptive Biotechnologies Corporation (US) | Viking Global Investors LP (US) |
100.00
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2
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Apr 10, 2014 | NuCana BioMed Limited (GB) | Sofinnova Ventures, Inc.; Sofinnova Partners; Morningside Venture Investments, Ltd.; Alida Capital International Ltd; Scottish Investment Bank |
57.00
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3
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Apr 22, 2014 | Avalanche Biotechnologies, Inc. (US) | Venrock; Deerfield Management Company; Adage Capital Management, L.P.; Redmile Group; Rockspring Capital; Sabby Capital; Cowen and Company, LLC; Undisclosed Investors |
55.00
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4
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Apr 22, 2014 | Principia Biopharma, Inc. (US) | Sofinnova Ventures, Inc.; Morgenthaler Ventures; New Leaf Venture Partners; OrbiMed Advisors, LLC; SR One; Mission Bay Capital, LLC; Undisclosed Investors |
50.00
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5
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Apr 28, 2014 | Kite Pharma, Inc. (US) | Undisclosed Investors |
50.00
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| 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