Mergers and acquisitions activity in the pharmaceutical sector was focused on strengthening and diversifying product portfolios for increasing short-term and long-term revenue growth.
In line with the above trend, Germany-based Bayer agreed to acquire Algeta, a Norwegian pharma company, for approximately $2.8 billion. This acquisition will allow Bayer to strengthen its oncology business and support its efforts in providing patients with innovative treatment options.
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M&A (including private equity) trend analysis
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| Source: Medtrack |
Additionally, Bayer will gain full control over Xofigo, an alpha-particle-emitting radioactive therapeutic agent for the treatment of patients with castration-resistant prostate cancer (CRPC), symptomatic bone metastases and no known visceral metastatic disease.
In another key deal, Ireland-based Jazz Pharmaceuticals, agreed to acquire Gentium, an Italy-based biopharma company, for approximately $1 billion. This transaction is expected to increase Jazz’s short-term and long-term revenue growth, diversify its development and commercial portfolio, and enhance its hematology/ oncology business.
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Top M&A deals (Dec 2013)
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||||
|
Rank
|
Date
|
Target
|
Acquirer
|
Deal value ($m)
|
|
1
|
12/19/13 | Algeta ASA (NO) | Bayer AG (DE) |
2882.17
|
|
2
|
12/24/13 | Ikaria, Inc. (US) | Madison Dearborn Partners, LLC (US) |
1600.00
|
|
3
|
12/19/13 | Gentium S.p.A (IT) | Jazz Pharmaceuticals plc (IE) |
1000.00
|
|
4
|
12/20/13 | Maxxam Analytics, Inc. (CA) | Bureau Veritas S.A. (FR) |
611.36
|
|
5
|
12/04/13 | Rempex Pharmaceuticals, Inc. (US) | The Medicines Company US) |
474.00
|
|
6
|
12/17/13 | Aqua Pharmaceuticals, LLC (US) | Almirall, SA (ES) |
402.6
|
|
7
|
12/11/13 | Cangene Corporation (CA) | Emergent Biosolutions, Inc. (US) |
222.00
|
|
8
|
12/16/13 | Lotus Pharmaceutical Co., Ltd. (TW) | Alvogen, Inc. (US) |
200.00
|
|
9
|
12/23/13 | Kemira Oyj – Formic acid business (FI) | Taminco Corporation (US) |
191.47
|
|
10
|
12/16/13 | NuPathe, Inc. (US) | Endo Health Solutions Inc. (US) |
105.00
|
| Source: Medtrack | ||||
Jazz’s would have access to Defitelio (defibrotide), an EMA-approved orphan drug used for the treatment of severe hepatic veno-occlusive disease (VOD) in adults and children undergoing hematopoietic stem cell transplantation. Defibrotide is available in 40 countries through 10 distribution partnerships, on a named patient basis.
M&A activity in the pharma sector decreased in volume terms and increased in value terms, when compared to the average of the previous six months (Jun–Nov 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 31 M&A transactions in Dec 2013, against the previous six months’ average of 32.6 transactions. In value terms, the sector recorded deals worth $7.8 billion, against the previous six months’ average of $7.6 billion.
The Indian pharma sector witnessed one deal during December 2013, against the previous six months’ average of 0.6 transactions, in which US-based asset management firm, Bain Capital, agreed to acquire Emcure Pharmaceuticals, an Indian pharmaceutical company.
|
Venture financing trend analysis
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| Source: Medtrack |
Venture funding
Companies in the pharma sector raised $271.5 million during December 2013, against the previous six months’ average of $250 million. In terms of volume, the sector recorded 14 venture funded deals, when compared to the previous six months’ average of 22.5 transactions.
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Top venture financing deals (Dec 2013)
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||||
|
Rank
|
Date
|
Target
|
Investors
|
Deal value ($m)
|
|
1
|
12/09/13 | Covagen AG (CH) | Gimv nv; Ascent Biomedical Ventures; Novartis Venture Funds; Edmond de Rothschild Investment Partners; Seroba Kernel Life Sciences Limited; Ventech; MP Healthcare Venture Management, Inc. |
47.13
|
|
2
|
12/04/13 | Zafgen, Inc. (US) | RA Capital Management, LLC; Brookside Capital; Venrock; Alta Partners; Undisclosed Investors |
45.00
|
|
3
|
12/10/13 | InVitae Corp. (US) | Genomic Health, Inc.; Randy Scott; Thomas McNerney & Partners; Redmile Group, LLC; Genesys Capital; Casdin Capital, LLC |
40.00
|
|
4
|
12/17/13 | Crescendo Biologics, Ltd. (UK) | Imperial Innovations; Astellas Venture Management LLC; Sofinnova Partners |
28.54
|
|
5
|
12/30/13 | TopiVert Limited (GB) | NeoMed Management AS; Johnson & Johnson Development Corporation; SV Life Sciences; Imperial Innovations Group PLC |
28.04
|
| Source: Medtrack | ||||
Notes
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.
For more information, visit us at www.medtrack.com