Mergers & Acquisitions
M&A activity in the pharma sector was focused on increasing product pipeline as companies were looking to see and accelerate their growth opportunities.
In line with the above trend, Wright Medical Group agreed to acquire BioMimetic Therapeutics, a US-based biotechnology company, for approximately $380 million. This acquisition will add breakthrough biologics platform and pipeline to further accelerate growth opportunities in Wright Medical’s extremities business.
With this transaction, Wright Medical will gain access to BioMimetic’s complementary product portfolio which includes Augment Bone Graft, a protein therapeutic under late stage FDA review as a replacement for autologous bone graft in foot and ankle fusions.
| M&A (including private equity) trend analysis |
| Source: Medtrack |
In another key deal, India-based Sun Pharmaceutical Industries agreed to acquire DUSA Pharmaceuticals, a US-based dermatology company for approximately $230 million. This transaction would enable Sun Pharma enter into the dermatology market, where they expect to see good growth opportunities.
With this acquisition, Sun Pharmaceutical will gain access to Levulan and BLU-U, FDA approved treatments for dermatological conditions.
| Top M&A deals (Nov 2012) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1 | Nov 16, 2012 | Schiff Nutrition International Inc (US) | Reckitt Benckiser Group plc (GB) | 1400 |
| 2 | Nov 21, 2012 | Pronova BioPharma ASA (NO) | BASF AG (DE) | 844.44 |
| 3 | Nov 8, 2012 | Fortitech, Inc. (US) | Royal DSM N.V. (NL) | 634 |
| 4 | Nov 19, 2012 | BioMimetic Therapeutics, Inc. (US) | Wright Medical Group, Inc. (US) | 380 |
| 5 | Nov 8, 2012 | DUSA Pharmaceuticals, Inc. (US) | Sun Pharmaceutical Industries Limited (IN) | 230 |
| 6 | Nov 21, 2012 | Cipla Medpro South Africa Limited (ZA) | Cipla, Ltd. (IN) | 220 |
| 7 | Nov 6, 2012 | Envoy Therapeutics, Inc. (US) | Takeda America Holdings, Inc. (JP) | 140 |
| 8 | Nov 5, 2012 | MEI Pharma, Inc. (AU) | Vivo Ventures ; New Leaf Venture Partners, LLC ; RA Capital Management, LLC ; Three Arch Opportunity Fund ; Undisclosed Investors | 28.43 |
| 9 | Nov 14, 2012 | NOX Technologies, Inc. (US) | Nu Skin Enterprises, Inc. (US) | 12.5 |
| 10 | Nov 21, 2012 | Proteologics, Ltd. (IL) | XTL Biopharmaceuticals, Ltd. (IL) | 1.66 |
| Source: Medtrack | ||||
M&A activity in the pharma sector decreased in volume terms and stabled in value terms, when compared to the average of previous six months’ (May 2012–Oct 2012). According to Datamonitor’s Medtrack database, the pharma sector recorded 25 M&A transactions in November 2012, against the previous six months’ average of 34.6 transactions. In value terms, the sector recorded deals worth $3.9 billion against the previous six months’ average of $3.9 billion.
The Indian pharma sector witnessed no deals during November 2012, against the average of 0.8 deals over the previous six months.
| Venture financing trend analysis |
| Source: Medtrack |
Venture Funding
Companies in the pharma sector raised $599 million during November 2012, against the previous six months’ average of $295.8 million. In terms of volume, the sector recorded 24 venture funded deals, compared to the previous six months’ average of 23 transactions.
| Top venture financing deals (Nov 2012) | ||||
| Rank | Date | Target | Investors | Deal value ($m) |
| 1 | Nov 15, 2012 | Intarcia Therapeutics, Inc. (US) | New Enterprise Associates, Inc. ; Venrock ; New Leaf Venture Partners,
LLC ; The Baupost Group, LLC ; Farallon Capital Management, L.L.C. ; Undisclosed Investors |
210.00 |
| 2 | Nov 27, 2012 | BRAIN AG (DE) | MP Beteiligungs-GmbH ; MIG Verwaltungs AG ; Undisclosed Investors | 77.78 |
| 3 | Nov 13, 2012 | Pearl Therapeutics, Inc. (US) | Vatera Healthcare Partners ; 5AM Ventures ; Clarus Ventures, LLC ; New Leaf Venture Partners, LLC | 65 |
| 4 | Nov 19, 2012 | Applied Genetic Technologies Corporation (US) | Alta Partners ; S.R. One, Limited ; InterWest Partners, LLC ; Intersouth Partners ; MedImmune Ventures, Inc.; Osage University Partners | 37.5 |
| 5 | Nov 8, 2012 | Auspex Pharmaceuticals, Inc. (US) | Panorama Capital ; Thomas, McNerney & Partners ; CMEA Capital ; Sloan Biotech Fund | 25 |
| 6 | Nov 6, 2012 | Ambit Biosciences Corporation (US) | OrbiMed Advisors, LLC; Aisling Capital ; Roche Venture Fund ; MedImmune Ventures, Inc. ; Forward Ventures ; Gimv NV ; Radius Ventures, LLC ; GrowthWorks Capital, Ltd. ; Apposite Capital LLP | 25 |
| 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