Mergers & acquisitions
M&A activity in the pharmaceutical segment recorded a downturn in volume terms across the globe. Asia-Pacific witnessed the highest fall in volume terms, recording three transactions in June 2012, a significant decrease of 76 per cent over the previous six month’s average of 12.5 transactions.
In one of the key deals announced during the month of June 2012, Bristol-Myers Squibb agreed to acquire Amylin Pharmaceuticals, a US-based biopharmaceutical company, for approximately $7 billion. With this acquisition, Bristol-Myers Squibb will gain access to Amylin’s approved and marketed products indicated for diabetes.
| M&A (including private equity) trend analysis |
Products gained by Bristol-Myers Squibb include BYETTA and BYDUREON, both type II diabetes therapeutics which are approved in the US and Europe; Metreleptin, a diabetes drug in patients with rare forms of inherited or acquired lipodystrophy, which is under review with the US FDA; and SYMLIN, a treatment for type I & II diabetes in patients with inadequate glycemic control on meal-time insulin which has been approved by the FDA.
The transaction also complements current portfolio of Bristol-Myers Squibb by creating a more comprehensive disease management platform with the addition of GLP-1 agonist franchise.
| Top M&A deals (June 2012) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1 | Jun 29, 2012 | Amylin Pharmaceuticals, Inc. (US) | Bristol-Myers Squibb Company (US) | 7,000.00 |
| 2 | Jun 13, 2012 | Proximagen Group plc (GB) | Upsher-Smith Laboratories (US) | 553.68 |
| 3 | Jun 15, 2012 | OraPharma, Inc. (US) | Valeant Pharmaceuticals International, Inc. (CA) | 426.00 |
| 4 | Jun 4, 2012 | ORIGIO a/s (DK) | The Cooper Companies, Inc. (US) | 189.00 |
| 5 | Jun 21, 2012 | Xanodyne Pharmaceuticals, Inc. –Zipsor (US) | Depomed, Inc. (US) | 25.90 |
| 6 | Jun 13, 2012 | NeuroNova AB (SE) | Newron Pharmaceuticals S.p.A. (IT) | 19.23 |
| 7 | Jun 18, 2012 | Suzhou Erye Pharmaceutical Co.,Ltd. (CN) | Undisclosed Acquirer () | 12.28 |
| 8 | Jun 1, 2012 | Entest BioMedical, Inc. (US) | Southridge Partners II, LP (US) | 10.00 |
| 9 | Jun 25, 2012 | Pivotal Therapeutics, Inc. (CA) | Crossover Healthcare Fund LLC (US) | 4.88 |
| Source: MedTRACK | ||||
The M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of the previous six months (Dec 2011 – May 2012). According to Datamonitor’s MedTRACK database, the pharma sector recorded 24 M&A transactions in June 2012 against the previous six months’ average of 55 transactions. In value terms, the sector recorded deals worth $8.2 billion against the previous six months’ average of $9.5 billion.
The Indian pharma sector witnessed only one deal during June 2012, against the average of 2.1 deals over the previous six months in which Bliss GVS Pharma acquired 70 per cent stake in Kremoint Pharma, a manufacturer and exporter of pharmaceutical products.
| Venture financing trend analysis |
Venture funding
Companies in the pharma sector raised $153.1 million during June 2012, against the previous six months’ average of $258 million. In terms of volume, the sector recorded 18 venture funded deals, compared to the previous six months’ average of 26.1 transactions.
| Top venture financing deals (June 2012) | ||||
| Rank | Date | Target | Investors | Deal value ($m) |
| 1 | Jun 12, 2012 | Igenica, Inc. (US) | Third Rock Ventures, LLC; The Column Group; OrbiMed Advisors, LLC; 5AM Ventures | 33.00 |
| 2 | Jun 13, 2012 | Rhythm Pharmaceuticals (US) | MPM Capital; New Enterprise Associates, Inc.; Third Rock Ventures, LLC; Ipsen S.A. | 25.00 |
| 3 | Jun 5, 2012 | PhaseBio Pharmaceuticals, Inc. (US) | New Enterprise Associates, Inc.; Astellas Venture Management LLC; Johnson & Johnson Development Corporation; Hatteras Venture Partners; Fletcher Spaght Ventures | 23.10 |
| 4 | Jun 19, 2012 | Nuevolution A/S (DK) | Industrifonden; Sunstone Capital A/S; SEB Venture Capital; SEB Utvecklingsstiftelse | 13.70 |
| 5 | Jun 21, 2012 | EndoGastric Solutions, Inc. (US) | Advanced Technology Ventures; Canaan Partners; Chicago Growth Partners; De Novo Ventures; Foundation Medical Partners; Oakwood Medical Investors; Radius Ventures, LLC | 13.00 |
| 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:
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.
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