A decline was seen in both volume and value terms in the Indian pharmaceutical sector’s M&A activity, witnessing two deals during March 2012, against the average of 2.8 deals over the previous six months
Mergers and acquisitions
In line with the above trend, Belgium-based Omega Pharma agreed to acquire OTC brands of GlaxoSmithKline, a UK-based pharmaceutical company, for $613.6 million. The transaction will significantly strengthen Omega Pharma’s product portfolio and will create critical mass for the company in a number of European markets like Germany, the UK, Poland and Italy.
With this acquisition, Omega Pharma will gain access to OTC brands Lactacyd, Abtei, Solpadeine, Zantac, Nytol and Beconase, which generated sales of over $261 million in 2011. The transaction generates attractive returns to GlaxoSmithKline and simplifies its ongoing consumer business, allowing it to focus on its priority brands and markets.
| M&A (including private equity) trend analysis |
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In another key deal, Bausch & Lomb agreed to acquire ISTA Pharmaceuticals, a US-based branded prescription eye care business, for approximately $500 million. The transaction accelerates Bausch & Lomb’s strategy to strengthen its pipeline and marketed products and capabilities.
With this acquisition, Bausch & Lomb will gain access to ISTA’s portfolio of four marketed products and its complementary development pipeline. Also, with this combination, Bausch & Lomb will significantly enhance its pharmaceutical pipeline, nearly doubling the number of mid- to late-stage innovations.
The M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of previous six months (September 2011–February 2012). According to Datamonitor’s MedTRACK database, the pharma sector recorded 40 M&A transactions in March 2012 against the previous six months’ average of 54.8 transactions. In value terms, the sector recorded deals worth $2.1 billion against the previous six months’ average of $5.7 billion.
| Top M&A deals (Mar 2012) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1 | Mar 15, 2012 | GlaxoSmithKline plc – European OTC Pharmaceutical Brands (GB) | Omega Pharma NV (BE) | 613.60 |
| 2 | Mar 26, 2012 | ISTA Pharmaceuticals, Inc. (US) | Bausch & Lomb Incorporated (US) | 500.00 |
| 3 | Mar 15, 2012 | FerroKin Biosciences, Inc. (US) | Shire plc (GB) | 325.00 |
| 4 | Mar 26, 2012 | Natur Produkt International, JSC (RU) | Valeant Pharmaceuticals International, Inc. (US) | 185.00 |
| 5 | Mar 5, 2012 | Epitomics, Inc. (US) | Abcam plc (GB) | 170.00 |
| 6 | Mar 2, 2012 | LuYe Pharmaceutical Investment Co., Ltd. (CN) | CITIC Private Equity Funds Management Co., Ltd.; New Horizon Capital; CDH Capital | 140.00 |
| 7 | Mar 21, 2012 | Cytos Biotechnology AG (CH) | Amgen, Inc.; Abingworth Management Limited; Aisling Capital; venBio LLC | 40.56 |
| 8 | Mar 26, 2012 | EirGen Pharma, Ltd. (IE) | Saudi Pharmaceutical Industries & Medical Appliances Corporation (SA) | 25.10 |
| 9 | Mar 22, 2012 | Ahlcon Parenterals (India) Limited (IN) | B. Braun Singapore Pte., Ltd. (SG) | 16.73 |
| 10 | Mar 6, 2012 | Vardhman Chemtech Limited (IN) | India Venture Advisors, Inc. (IN) | 14.04 |
| Source: MedTRACK | ||||
The Indian pharma sector witnessed two deals during March 2012, against the average of 2.8 deals over the previous six months. Notable among them is, Singapore-based B. Braun’s acquisition of Ahlcon Parenterals, a manufacturer and marketer of large and small volume parenterals, for approximately $16.73 million. The transaction will further accelerate B Braun’s growth in India.
| Venture financing trend analysis |
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Venture funding
Companies in the pharma sector raised $295.3 million during March 2012, against the previous six months’ average of $374.5 million. In terms of volume, the sector recorded 23 venture funded deals, compared to the previous six months’ average of 27.8 transactions.
| Top venture financing deals (Mar 2012) | ||||
| Rank | Date | Target | Investors | Deal value ($m) |
| 1 | Mar 26, 2012 | ADC Therapeutics Sarl (CH) | Celtic Therapeutics Management L.L.L.P; Spirogen Ltd.; Cancer Research Technology Limited | 50.00 |
| 2 | Mar 6, 2012 | Aragon Pharmaceuticals, Inc. (US) | Topspin Fund; Aisling Capital; OrbiMed Advisors, LLCl; The Column Group | 42.00 |
| 3 | Mar 16, 2012 | Tarsa Therapeutics, Inc.. (US) | Novo A/S; Foresite Capital Management, LLC; MVM Life Science Partners, LLP; Quaker BioVentures | 28.00 |
| 4 | Mar 28, 2012 | Promethera Biosciences (BE) | Boehringer Ingelheim Venture Fund; Mitsui Global Investment ; Sambrinvest SA; Shire plc; ATMI, Inc.; Vesalius BioCapital Partners sarl; S.R.I.W. s.a.; Vives-Louvain Technology Fund; Life Science Research Partners; Nivelinvest SA; Sopartec; Undisclosed Angel Investors | 22.79 |
| 5 | Mar 5, 2012 | 4s3 Bioscience, Inc. (US) | KLP Enterprises | 20.00 |
| 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.
For more information, visit us at www.medtrack.com
Definitions
1. Deal value trend is based on transactions where associate values disclosed.
2. Trend analysis excludes rumored and terminated deals.
3. Value and volume analysis excludes private equity exits.
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