Mergers and acquisitions
M&A activity in the pharmaceutical segment continued to decline by recording a downturn of 38 per cent in volume terms across the globe. While, the Asia-Pacific region witnessed the highest fall in volume terms, recording only one transaction in August 2012, a significant decrease of 89 per cent over the previous six months’ average of 9.5 transactions in this region.
In one of the key deals announced during the month, Sunovion Pharmaceuticals acquired Elevation Pharmaceuticals, a US-based biopharmaceutical company for approximately $430 million. The acquisition will further strengthen and diversify Sunovion’s respiratory pipeline, and enable Sunovion to continue to meet the needs of people living with respiratory diseases, along with the healthcare providers who treat them.
| M&A (including private equity) trend analysis |
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With this transaction, Sunovion will gain access to EP-101, an inhalation solution of a long-acting muscarinic antagonist (LAMA) bronchodilator that is in phase 2b of clinical trials, indicated for the treatment of patients with moderate to severe chronic obstructive pulmonary disease (COPD). EP-101 is currently the only LAMA in late stage development in nebulsed form, providing a significant opportunity to address the needs of patients struggling with the control of their COPD, using handheld inhalers.
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The M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of previous six months (Feb 2012–Jul 2012). According to Datamonitor’s MedTRACK database, the pharma sector recorded 28 M&A transactions in August 2012, against the previous six months’ average of 45 transactions. In value terms, the sector recorded deals worth $2.9 billion against the previous six months’ average of $10.3 billion.
The Indian pharma sector witnessed no deals during August 2012, against the average of 1.5 deals over the previous six months.
| Venture financing trend analysis |
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Venture funding
Companies in the pharma sector raised $100.1 million during August 2012, against the previous six months’ average of $255 million. In terms of volume, the sector recorded seven venture funded deals, compared to the previous six months’ average of 23.5 transactions.
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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
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