Mergers and acquisitions
M&A activity in the pharmaceutical market was focused on increasing product offerings through complementary product portfolios, as the companies were looking for long-term growth.
In line with the above trend, Canada-based Valeant Pharmaceuticals agreed to acquire Medicis Pharmaceutical, a US-based specialty pharma company for approximately $2.6 billion. This acquisition is a strategic fit and will help the company to drive long-term growth.
| M&A (including private equity) trend analysis |
| Source: MedTRACK |
With this transaction, Valeant will gain access to Medicis’ complementary portfolio of branded products Solodyn, Restylane, Perlane, Ziana, Dysport and Zyclara. The transaction will strengthen Valeant’s presence in acne, actinic keratosis, aesthetic injectables and anti-viral markets.
In another key deal, Mallinckrodt, the pharmaceuticals business of Covidien agreed to acquire CNS Therapeutics, a US-based specialty pharma company for approximately $100 million. With this acquisition, Mallinckrodt will gain access to CNS Therapeutics’ marketed product line, which complements its branded portfolio.
| Top M&A deals (Sep 2012) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1. | Sep 3, 2012 | Medicis Pharmaceutical Corporation (US) | Valeant harmaceuticals International, Inc. (CA) | 2600.00 |
| 2. | Sep 12, 2012 | 3SBio, Inc. (DE) | CPEChina Fund, L.P.; Dr. Jing Lou | 337.00 |
| 3. | Sep 24, 2012 | QLT, Inc. – Visudyne (CA) | Valeant Pharmaceuticals International, Inc. (CA) | 132.50 |
| 4. | Sep 17, 2012 | Complete Genomics, Inc. (US) | Beijing Genomics Institute (CN) | 117.60 |
| 5. | Sep 27, 2012 | China Nuokang Bio-Pharmaceutical, Inc. (CN) | Kingbird Investment, Inc. (US) | 112.00 |
| 6. | Sep 24, 2012 | CNS Therapeutics, Inc. (US) | Mallinckrodt, Inc. (US) | 100.00 |
| 7. | Sep 17, 2012 | Arch Pharmalabs, Ltd. (IN) | Mitsui & Co., Ltd. (JP) | 69.32 |
| 8. | Sep 6, 2012 | Triplex Biosciences Company, Ltd. (CN) | RRJ Capital (HK) | 50.00 |
| 9. | Sep 27, 2012 | NeuroSearch A/S – Huntexil (DK) | Teva Pharmaceutical Industries, Ltd. (IL) | 25.90 |
| 10. | Sep 27, 2012 | BioLineRx, Ltd. (IL) | Lincoln Park Capital Fund, LLC (US) | 15.00 |
| Source: MedTRACK | ||||
The M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of previous six months (Mar 2012–Aug 2012). According to Datamonitor’s Medtrack database, the pharma sector recorded 25 M&A transactions in September 2012, against the previous six months’ average of 41.5 transactions. In value terms, the sector recorded deals worth $3.6 billion against the previous six months’ average of $10.3 billion.
The Indian pharma sector witnessed two deals during September 2012, against the average of 0.8 deals over the previous six months. Among them, Japan-based Mitsui’s announcement for acquisition of 25 per cent stake in Arch Pharmalabs, a manufacturer and seller of active pharmaceutical ingredients for $69.32 million, is notable.
| Venture financing trend analysis |
| Source: MedTRACK |
Venture funding
Companies in the pharma sector raised $304.1 million during September 2012, against the previous six months’ average of $247.6 million. In terms of volume, the sector recorded 18 venture funded deals, compared to the previous six months’ average of 21.1 transactions.
| Top venture financing deals (Sep 2012) | ||||
| Rank | Date | Target | Investors | Deal value ($m) |
| 1. | Sep 18, 2012 | CureVac GmbH (DE) | dievini Hopp BioTech holding GmbH & Co. KG | 104.95 |
| 2. | Sep 20, 2012 | Foundation Medicine, Inc. (US) | Deerfield Management Company L.P; Casdin Capital, LLC; Redmile Group, LLC; Roche Venture Fund; WuXi Corporate Venture Fund; Third Rock Ventures, LLC ; Google Ventures; Kleiner Perkins Caufield & Byers ; Undisclosed Fund ; Undisclosed Investors | 42.50 |
| 3. | Sep 20, 2012 | MyoKardia (US) | Third Rock Ventures, LLC | 38.00 |
| 4. | Sep 5, 2012 | F2G Ltd (GB) | Advent Life Sciences Fund; Novartis BioVenture Fund; Merifin Capital ; Sunstone Capital A/S; Astellas Venture Fund I (AVF I) ; K Nominees | 30.00 |
| 5. | Sep 19, 2012 | Selexys Pharmaceuticals Corporation (US) | MPM Capital | 23.00 |
| 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 rumoured and terminated deals.
- Value and volume analysis excludes private equity exits.
For more information, visit us at www.medtrack.com