Mergers and acquisitions
M&A activity in the pharmaceutical sector continued to focus on expanding product portfolios as companies were looking for opportunities to generate new pipelines.
In line with the above trend, Allergan agreed to acquire MAP Pharmaceuticals, a US-based biopharmaceutical company, for approximately $958 million. With this transaction, Allergan will gain access to MAP Pharmaceuticals’ Levadex, an orally inhaled drug for the potential acute treatment of migraine in adults, which is under review with the US Food and Drug Administration (FDA).
Allergan will continue the development of Levadex as a potential acute treatment for migraine and use MAP Pharmaceutical’s proprietary drug particle and inhalation technologies to generate new pipeline opportunities.
| M&A (including private equity) trend analysis |
| Source: Medtrack |
In another key deal, US-based Watson Pharmaceuticals acquired Uteron Pharma, a Belgium-based development company, dedicated to female healthcare, for approximately $305 million. The acquisition of Uteron expands Watson’s global brands pipeline for women’s health products, including two potential near-term global commercial opportunities in contraception and infertility; and one novel oral contraceptive, projected to launch globally in 2018.
This transaction is a first step for Watson to enhance its branded opportunities globally, while creating near term revenue for global brands and further expanding its women’s health development portfolio.
| Top M&A deals (Jan 2013) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1. | Jan 22, 2013 | MAP Pharmaceuticals, Inc. (US) | Allergan, Inc. (US) | 958.00 |
| 2. | Jan 23, 2013 | Uteron Pharma Holding SA (BE) | Actavis, Inc. (US) | 305.00 |
| 3. | Jan 24, 2013 | Inspiration Biopharmaceuticals, Inc. & Ipsen S.A.- OBI1 | Baxter International, Inc. | 185.00 |
| 4. | Jan 30, 2013 | BioClinica, Inc. (US) | JLL Partners (US) | 123.00 |
| 5. | Jan 18, 2013 | BioVectra, Inc. (CA) | Questcor Pharmaceuticals, Inc. (US) | 100.50 |
| 6. | Jan 16, 2013 | Guilin Tianhe Pharmaceutical Co., Ltd. (CN) | China Resources Sanjiu Medical & Pharmaceutical Co., Ltd. (CN) | 92.90 |
| 7. | Jan 14, 2013 | Shanghai Zerun Biotechnology Co Ltd (CN) | Yunnan Walvax Biotech Co., Ltd (CN) | 49.20 |
| 8. | Jan 15, 2013 | Shanghai Celgen Bio-Pharmaceutical Co., Ltd. (CN) | Devont Asset Management Ltd (CN) | 48.17 |
| 9. | Jan 31, 2013 | Pharmaxis, Ltd. (AU) | NovaQuest Pharma Opportunities Fund III, L.P. (US) | 40.00 |
| 10. | Jan 7, 2013 | Zacharon Pharmaceuticals, Inc. (US) | BioMarin Pharmaceutical, Inc. (US) | 10.00 |
| Source: Medtrack | ||||
M&A activity in the pharma sector slightly increased in volume terms and decreased in value terms, when compared to the average of previous six months’ (Jul 2012–Dec 2012). According to Datamonitor’s Medtrack database, the pharma sector recorded 36 M&A transactions in January 2013, against the previous six months’ average of 35.6 transactions. In value terms, the sector recorded deals worth $1.9 billion against the previous six months’ average of $3.2 billion.
The Indian pharma sector witnessed one deal during January 2013, against the average of zero deals over the previous six months in which India-based Fidelity Growth Partners made an investment of $5.49 million in Richcore Lifesciences, a biotechnology company.
| Venture financing trend analysis |
| Source: Medtrack |
Venture funding
Companies in the pharma sector raised $365.1 million during December 2012, against the previous six months’ average of $357.4 million. In terms of volume, the sector recorded 17 venture funded deals, compared to the previous six months’ average of 25 transactions.
| Top venture financing deals (Jan 2013) | ||||
| Rank | Date | Target | Investors | Deal value ($m) |
| 1. | Jan 15, 2013 | Versartis, Inc. (US) | Aisling Capital; Index Ventures LLP; New Leaf Venture Partners, LLC; Advent Life Sciences Fund | 25.00 |
| 2. | Jan 3, 2013 | Gradalis, Inc. (US) | Undisclosed Investors | 24.00 |
| 3. | Jan 28, 2013 | Ocular Therapeutix, Inc. (US) | Polaris Venture Partners; Versant Venture Management LLC; SV Life Sciences; SPARTA Capital Partners, LLC; Ascension Health Ventures, LLC | 23.80 |
| 4. | Jan 4, 2013 | Solstice Biologics, LLC (US) | venBio LLC; Aeris Capital AG | 18.00 |
| 5. | Jan 14, 2013 | Aileron Therapeutics, Inc. (US) | Apple Tree Partners; Excel Venture Management; Lilly Ventures; The Novartis Venture Fund; Roche Venture Fund; SR One | 12.00 |
| 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:
- Deal value trend is based on transactions where associate values have been disclosed.
- Trend analysis excludes rumored and terminated deals.
- Value and volume analysis excludes private equity exits.
For more information, visit us at www.medtrack.com