M&A activity in the pharmaceutical sector was focused on emerging markets and generics as companies were looking at new high-growth geographic markets. According to IMS, the global generic injectables market is expected to grow at a compounded annual growth rate of 13 per cent from 2011-2017, driven by patent expiries outpacing most other dosage forms.
In line with the above trend, US-based Mylan agreed to acquire Agila Specialties, an India-based developer and manufacturer of high-quality generic injectable products, for approximately $1.85 billion. This transaction will significantly expand and strengthen Mylan’s global injectables platform and provide entry into new high-growth geographic markets such as Brazil.
| M&A (including private equity) trend analysis |
| Source: Medtrack |
With this acquisition, Mylan will gain access to a broad product portfolio of more than 300 filings approved globally and marketed through a network covering 70 countries, including 61 abbreviated new drug applications (ANDAs) approved by the US Food and Drug Administration (FDA).
Mylan will also gain access to nine high-quality manufacturing facilities in India, Brazil and Poland, eight of which have been approved by the FDA. Agila’s manufacturing capabilities include vials, pre-filled syringes, ampoules, lyophilisation, cytotoxics and antibiotics.
| Top M&A deals (Feb 2013) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1 | 02/27/13 | Agila Specialties Private Limited (IN) | Mylan, Inc. (US) |
1850.00
|
| 2 | 02/08/13 | 3SBio, Inc. (CN) | Decade Sunshine Limited (KY) |
340.00
|
| 3 | 02/01/13 | Velcera Inc. (US) | Perrigo Company (US) |
160.00
|
| 4 | 02/20/13 | Ipsen & Inspiration assets | Cangene Corporation (CA) |
55.90
|
| 5 | 02/10/13 | Algatechnologies, Ltd. (IL) | Grovepoint Capital LLP (GB) |
50.00
|
| 6 | 02/01/13 | Productos Medix SA de CV (MX) | WAMEX Private Equity (MX) |
32.00
|
| 7 | 02/07/13 | Flamel Technologies SA (FR) | Deerfield Management Company L.P (US) |
15.00
|
| 8 | 02/28/13 | Spring Bank Pharmaceuticals, Inc. (US) | Brock Securities, LLC; Gilford Securities Incorporated |
10.50
|
| 9 | 02/25/13 | Cuattro Veterinary USA, LLC (US) | Heska Corporation (US) |
7.65
|
| 10 | 02/14/13 | Finoso Pharma Private Limited (IN) | Vivimed Labs Limited (IN) |
2.79
|
| Source: Medtrack | ||||
M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of previous six months’ (August 2012–January 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 20 M&A transactions in February 2013, against the previous six months’ average of 37.8 transactions. In value terms, the sector recorded deals worth $2.5 billion against the previous six months’ average of $3.3 billion.
The Indian pharma sector witnessed three deals during February 2013, against the average of 0.8 deals over the previous six months. Apart from Mylan’s acquisition announcement of Agila Specialties, Vivimed Labs’ acquisition of Finoso Pharma, a pharma development services company for $2.79 million, is notable.
| Venture financing trend analysis |
| Source: Medtrack |
Venture funding
Companies in the pharma sector raised $123.1 million during February 2013, against the previous six months’ average of $360.1 million. In terms of volume, the sector recorded 16 venture funded deals, compared to the previous six months’ average of 25.8 transactions.
| Top venture financing deals (Feb 2013) | ||||
|
Rank
|
Date
|
Target
|
Investors
|
Deal value ($m)
|
|
1
|
02/14/13 | Jounce Therapeutics, Inc. (US) | Third Rock Ventures, LLC (US) |
47.00
|
|
2
|
02/26/13 | Glide Pharma (GB) | Invesco Perpetual; Undisclosed Investors |
21.19
|
|
3
|
02/14/13 | Elcelyx Therapeutics, Inc. (US) | GSM Fund LLC; Morgenthaler Ventures; Kleiner Perkins Caufield & Byers; Technology Partners |
20.00
|
|
4
|
02/28/13 | Kala Pharmaceuticals, Inc. (US) | SaskWorks Venture Fund Inc.; Lux Capital Management ; Polaris Venture Partners; Third Rock Ventures, LLC |
11.50
|
|
5
|
02/26/13 | Brickell Biotech, Inc. (US) | AMOREPACIFIC Ventures ; Palisade Concentrated Equity Partnership II, L.P.; Undisclosed Investors |
7.00
|
| 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. Deal value trend is based on transactions where associate values have been disclosed.
Trend analysis excludes rumoured and terminated deals. Value and volume analysis excludes private equity exits.
For more information, visit us at www.medtrack.com