Mergers and acquisitions
M&A activity in the pharmaceutical sector was focussed on strengthening presence in pre-established markets as companies looked to reinforce their market positions.
In line with the above trend, Switzerland-based Novartis agreed to acquire Fougera Pharmaceuticals, a US-based dermatology generics company, for $1.525 billion. The acquisition creates another strong global growth platform for Sandoz, the generic pharma division of Novartis.
| M&A (including private equity) trend analysis |
| Source: MedTRACK |
The addition of Fougera’s portfolio further strengthens Sandoz’s differentiated products strategy and is expected to allow the company to gain access to Fougera’s dermatology development and manufacturing expertise, with numerous launches planned for 2012 and beyond.
In another key deal, Takeda Farmaceutica Brasil agreed to acquire Multilab Industria e Comercio de Produtos Farmaceuticos, a Brazil-based pharma company, for approximately $265 million. This acquisition significantly reinforces Takeda’s position in Brazil.
With this acquisition, Takeda will gain access to Multilab’s product, Multigrip; an OTC product for cold and flu treatment which Takeda believes will be an excellent addition to its existing OTC product line in Brazil.
| Top M&A deals (May 2012) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1. | May 2, 2012 | Fougera Pharmaceuticals, Inc. (US) | Novartis AG (CH) | 1,525.00 |
| 2. | May 8, 2012 | Calpis Co., Ltd. (JP) | Asahi Breweries, Ltd. (JP) | 1,502.00 |
| 3. | May 25, 2012 | Multilab Industria e Comercio de Produtos Farmaceuticos, Ltda. (BR) | Takeda Farmaceutica Brasil, Ltda. (BR) | 265.73 |
| 4. | May 14, 2012 | EKR Therapeutics, Inc. (US) | Cornerstone Therapeutics, Inc. (US) | 150.00 |
| 5. | May 15, 2012 | Cellzome AG (DE) | GlaxoSmithKline plc (GB) | 99.00 |
| 6. | May 3, 2012 | University Medical Pharmaceuticals Corp. – Assets (US) | Valeant Pharmaceuticals International, Inc. (CA) | 64.00 |
| 7. | May 31, 2012 | Alliance Medical Products, Inc. (US) | Siegfried Holding AG (CH) | 58.00 |
| 8. | May 21, 2012 | InterMune, Inc. – Actimmune rights (US) | Vidara Therapeutics International Limited (IE) | 55.00 |
| 9. | May 10, 2012 | Tekni-Plex (US) | Oaktree Capital Management, L.P (US) | 50.00 |
| 10. | May 18, 2012 | Novavax, Inc. (US) | RA Capital Biotech Fund LP (US) | 12.20 |
| 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 (November 2011–April 2012). According to Datamonitor’s MedTRACK database, the pharma sector recorded 36 M&A transactions in May 2012, against the previous six months’ average of 54.8 transactions. In value terms, the sector recorded deals worth $3.8 billion, against the previous six months’ average of $11.8 billion.
The Indian pharma sector witnessed no deals during May 2012, against the average of 2.3 deals over the previous six months.
| Venture financing trend analysis |
| Source: MedTRACK |
Venture funding
Companies in the pharma sector raised $210.1 million during May 2012, against the previous six months’ average of $309.3 million. In terms of volume, the sector recorded 21 venture funded deals, compared to the previous six months’ average of 26.6 transactions.
| Top venture financing deals (May 2012) | ||||
| Rank | Date | Target | Investors | Deal value ($m) |
| 1. | May 24, 2012 | Sangart, Inc. (US) | Leucadia National Corporation | 50.00 |
| 2. | May 30, 2012 | Kona Medical, Inc. (US) | Essex Woodlands Health Ventures; Domain Associates, L.L.C.; Morgenthaler Ventures; BioStar Ventures | 30.00 |
| 3. | May 8, 2012 | Eleven Biotherapeutics (US) | Third Rock Ventures, LLC; JAFCO Co., Ltd.; Flagship Ventures | 20.00 |
| 4. | May 8, 2012 | Sutro Biopharma, Inc. (US) | Skyline Ventures; Lilly Ventures; Amgen Ventures; SV Life Sciences; Alta Partners | 16.00 |
| 5. | May 11, 2012
|
Egalet a/s (DK) | CLS Capital; Atlas Venture; Omega Funds; Index Ventures LLP; Sunstone Capital A/S | 14.00 |
| 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.
For more information, visit us at www.medtrack.com