M&A activity in the pharmaceutical sector was focused on the expansion of product pipelines with complementary franchises, to create blockbuster therapeutic areas.
In line with the above trend, Forest Laboratories agreed to acquire Aptalis, a US-based specialty pharmaceutical company, for approximately $2.9 billion. This acquisition complements Forest Laboratories’ growing cystic fibrosis business in Europe and enables Forest Laboratories to strengthen its gastrointestinal franchise in the US and Canada. This transaction would help Forest Laboratories to diversify its offering in key therapeutic areas and geographies.
Also, Forest Laboratories will gain access to Aptalis’ manufacturing and commercial operations in the US, the European Union and Canada along with the existing pipeline.
| Figure: M&A (including private equity) trend analysis |
 |
| Source: MedTrack |
In another key deal, Alnylam Pharmaceuticals agreed to acquire Sirna Therapeutics, a US-based biotechnology company, for approximately $290 million. This transaction would complement and extend Alnylam’s progress and continued focus on RNAi therapeutics, including siRNA-conjugate technologies. The addition of RNAi technology and intellectual property will advance Alnylam’s efforts to build a new class of medicines.
Additionally, Alnylam will gain access to Sirna Therapeutics’ pre-clinical therapeutic candidates, chemistry and other delivery technologies.
Top M&A deals (Jan 2014) | ||||
Rank | Date | Target | Acquirer | Deal value ($m) |
1 | 01/08/14 | Aptalis Pharma, Inc. (US) | Forest Laboratories, Inc. (US) | 2900.00 |
2 | 01/30/14 | Accelrys, Inc. (US) | Dassault Systemes S.A. (FR) | 750.00 |
3 | 01/10/14 | American Pacific Corporation (US) | H.I.G. Capital, LLC (US) | 392.00 |
4 | 01/12/14 | Sirna Therapeutics, Inc. (US) | Alnylam Pharmaceuticals, Inc. (US) | 290.00 |
5 | 01/21/14 | NuPathe, Inc. (US) | Teva Pharmaceutical Industries, Ltd. (IL) | 144.00 |
6 | 01/13/14 | 4-Antibody AG (CH) | Agenus Inc. (US) | 50.00 |
7 | 01/06/14 | Okapi Sciences NV (BE) | Aratana Therapeutics, Inc. (US) | 45.25 |
8 | 01/08/14 | Auspex Pharmaceuticals, Inc. (US) | Deerfield Management Company L.P.; Thomas, McNerney & Partners; CMEA Capital; Panorama Capital; BioMed Venture GmbH; Costa Verde Capital | 20.00 |
9 | 01/07/14 | Isarna Therapeutics GmbH (DE) | AT NewTec GmbH; MIG Fonds 2; MIG Fonds 3; MIG Fonds 9; MIG Fonds 5 | 17.69 |
10 | 01/07/14 | Bellicum Pharmaceuticals, Inc. (US) | AVG Ventures, LP; Remeditex Ventures, LLC | 14.70 |
| Source: MedTrack | ||||
M&A activity in the pharma sector increased in volume and decreased in value terms, when compared to the average of the previous six months (July – December 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 40 M&A transactions in January 2014, against the previous six months’ average of 32.8 transactions. In value terms, the sector recorded deals worth $5.1 billion, against the previous six months’ average of $7.9 billion.
The Indian pharma sector witnessed no deals during January 2014, against the average of 0.8 deals over the previous six months.
| Figure: Venture financing trend analysis |
 |
| Source: MedTrack |
Venture funding
Companies in the pharma sector raised $111.2 million during January 2014, against the previous six months’ average of $278.3 million. In terms of volume, the sector recorded 10 venture funded deals, when compared to the previous six months’ average of 21.5 transactions.
| Top venture financing deals (Jan 2014) | ||||
Rank | Date | Target | Investors | Deal value ($m) |
1 | 01/07/14 | Blueprint Medicines (US) | Nextech Invest Ltd.; Third Rock Ventures, LLC; Fidelity Biosciences; Casdin Capital, LLC; Biotech Value Fund, L.P; Undisclosed Investors | 25.00 |
2 | 01/13/14 | Juno Therapeutics, Inc. (US) | Bezos Expeditions; Venrock | 25.00 |
3 | 01/10/14 | WellDoc, Inc. (US) | Merck Global Health Innovation Fund; Windham Venture Partners | 20.00 |
4 | 01/08/14 | Auspex Pharmaceuticals, Inc. (US) | Oxford Finance Corporation | 15.00 |
5 | 01/28/14 | Igenica, Inc. (US) | The Column Group; 5AM Ventures; OrbiMed Advisors, LLC; Third Rock Ventures, LLC; Undisclosed Investors | 14.00 |
| 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
- Advertisement -
