Mergers and acquisitions (M&A) activity in the pharmaceutical sector recorded a downturn, value-wise, across the globe. North America witnessed the highest fall in terms of value, recording deals worth about $0.44 billion, a significant decrease of 94 per cent over the previous six month’s average of $6.4 billion.
In one of the key deals announced during the month of October, US-based MedImmune acquired Spirogen, a UK-based biotech company, focused on antibody-drug conjugate technology, for approximately $440 million.
M&A (including private equity) trend analysis |
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| Source: Medtrack |
With this acquisition, MedImmune’s oncology portfolio will be strengthened through Spirogen’s antibody-drug conjugate capability.
In another key deal, Novartis has been granted an exclusive right to acquire Sideris, a US-based biopharmaceutical company, for approximately $300 million. With this transaction, Novartis will gain access to Sideris’ lead asset, SP-420, which is an orally active small molecule that selectively binds iron and removes it from the body.
| Top M&A deals (Oct 2013) | ||||
Rank | Date | Target | Acquirer | Deal value ($m) |
1 | 10/14/13 | Spirogen Ltd. (GB) | MedImmune, LLC (US) | 440.00 |
2 | 10/22/13 | Sideris Pharmaceuticals, Inc. – Asset (US) | Novartis Pharmaceuticals Corporation (US) | 300.00 |
3 | 10/28/13 | Covidien plc (IE) | Integra LifeSciences Holdings Corporation (US) | 265.00 |
4 | 10/03/13 | Merus B.V. (ES) | Johnson & Johnson Development Corporation; Novartis Venture Funds; Pfizer Venture Investments; Bay City Capital LLC; Life Science Partners; Aglaia Oncology Fund B.V. | 42.00 |
5 | 10/15/13 | Vet Therapeutics, Inc. (US) | Aratana Therapeutics, Inc. (US) | 38.00 |
6 | 10/04/13 | Henan New Century Pharmaceutical (CN) | Tianjin Tasly Pharmaceutical Co., Ltd. (CN) | 24.61 |
7 | 10/15/13 | immatics biotechnologies GmbH (GB) | dievini Hopp BioTech holding GmbH & Co. KG; Wellington Partners Venture Capital GmbH; AT Impf GmbH; Undisclosed Investors | 16.28 |
8 | 10/04/13 | Pharmalink AB (SE) | Industrifonden; Undisclosed Investors; Investinor AS | 15.10 |
9 | 10/24/13 | CytoDyn, Inc. (US) | Undisclosed Investors | 14.50 |
10 | 10/31/13 | Hatchtech Pty., Ltd. (AU) | OneVentures Innovation Fund; University of Melbourne; Queensland Biotechnology Fund; Uniseed; Undisclosed Investors; Blue Sky Alternative Investments Limited | 11.96 |
| Source: Medtrack | ||||
M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of the previous six months’ (Apr – Sep 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 27 M&A transactions in October 2013, against the previous six months’ average of 31 transactions. In value terms, the sector recorded deals worth $1.2 billion, against the previous six months’ average of $9.2 billion.
The Indian pharma sector witnessed no deals during the month of October 2013.
Venture financing trend analysis |
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| Source: Medtrack |
Venture funding
Companies in the pharma sector raised $367.5 million during October 2013, against the previous six months’ average of $228.8 million. In terms of volume, the sector recorded 27 venture funded deals, when compared to the previous six months’ average of 19.8 transactions.
Top venture financing deals (Oct 2013) | ||||
Rank | Date | Target | Investors | Deal value ($m) |
1 | 10/15/13 | ADC Therapeutics Sarl (CH) | Auven Therapeutics Management L.L.L.P.; MedImmune, LLC | 40.0 |
2 | 10/29/13 | Calithera Biosciences, Inc. (US) | Adage Capital Management L.P.; Longwood Fund; Morgenthaler Ventures; Advanced Technology Ventures; Delphi Ventures; Undisclosed Investors | 35.0 |
3 | 10/30/13 | Immune Design Corp. (US) | The Column Group; Topspin Partners, LP; Alta Partners; Versant Ventures, Inc.; Osage Partners; ProQuest Investments; Sanofi-Genzyme BioVentures | 32.5 |
4 | 10/22/13 | Sideris Pharmaceuticals, Inc. (US) | Hatteras Venture Partners; MPM Capital; Osage University Partners; Sunstates Fund | 32.0 |
5 | 10/03/13 | Loxo Oncology, Inc. (US) | Aisling Capital; OrbiMed Advisors, LLC; Undisclosed Investors | 23.0 |
| 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
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