M&A activity in the pharmaceutical sector recorded a fall, in value terms, across the globe. North America witnessed the highest reduction, recording deals worth about $0.5 billion, a significant decrease of 94.3 per cent over the previous six month’s average of $8.2 billion.
Figure: M&A (including private equity) trend analysis |
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| Source: Medtrack |
In one of the key deals announced during the month of March, Vectura Group agreed to acquire Activaero, a Germany-based pharma company, for approximately $188.68 million. The acquisition will allow Vectura to strengthen its core capabilities and enable it to build a therapeutic specialty in respiratory diseases. This transaction supplements Vectura’s existing pipeline with a number of mid-and late-stage assets across a broad therapeutic scope, within the respiratory disease sector (seven clinical and several pre-clinical programmes).
Top M&A deals (Mar 2014) | ||||
RankDate | Date | Target | Acquirer | Deal value ($m) |
1 | 03/20/14 | Revive Pharmaceuticals – Donnatal (US) | Concordia Healthcare Corp. (CA) | 265.30 |
2 | 03/13/14 | Activaero GmbH (DE) | Vectura Group plc (GB) | 188.68 |
3 | 03/31/14 | Argenta Discovery, Ltd. (GB); BioFocus DPI plc (GB) | Charles River Laboratories International, Inc. (US) | 185.90 |
4 | 03/31/14 | Aptiv Solutions (US) | ICON Plc (IE) | 143.50 |
5 | 03/11/14 | GLYCOTOPE GmbH (DE) | ELSA Eckert Life Science Accelerator GmbH; Jossa Arznei GmbH | 76.34 |
6 | 03/24/14 | Cedarburg Pharmaceuticals, Inc. (US) | Albany Molecular Research, Inc. (US) | 41.00 |
7 | 03/14/14 | Agendia BV (NL) | Norgine Ventures; Undisclosed Investors | 20.88 |
8 | 03/03/14 | RainDance Technologies, Inc. (US) | GE Venture; Northgate Capital; Undisclosed Investors | 16.50 |
9 | 03/04/14 | Activiomics, Ltd. (GB) | Retroscreen Virology Group plc (GB) | 6.68 |
| Source: Medtrack | ||||
In addition, Vectura will gain access to FAVORITE (Flow And VOlume Regulated Inhalation TEchnology), a nebulizer-based inhalation technology, and three devices, AKITA(R) JET, APIXNEB and FOX; along with an un-partnered, late-stage, asthma therapeutic: FAVOLIR, with peak sales potential exceeding the total deal consideration.
M&A activity in the pharma sector decreased in volume and value terms, when compared to the average of the previous six months (September 2013 – February 2014).
Figure: Venture financing trend analysis |
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| Source: Medtrack |
According to Datamonitor’s Medtrack database, the pharma sector recorded 22 M&A transactions in March 2014, against the previous six months’ average of 31.1 transactions. In value terms, the sector recorded deals worth $0.9 billion, against the previous six months’ average of $9.3 billion.
The Indian pharma sector witnessed no deals during March 2014, against the average of 0.8 deals over the previous six months.
Companies in the pharma sector raised $246.4 million during March 2014, against the previous six months’ average of $257.3 million. In terms of volume, the sector recorded 12 venture funded deals, when compared to the previous six months’ average of 19 transactions.
Top venture financing deals (Mar 2014) | ||||
Rank | Date | Target | Investors | Deal value ($m) |
1 | 03/26/14 | Kolltan Pharmaceuticals, Inc. (US) | KLP Enterprises; Undisclosed Investors; Deerfield Management Company; Franklin Berger; HBM Healthcare Investments Ltd; Purdue Pharma, L.P.; Osage University Partners | 60 |
2 | 03/05/14 | ZS Pharma, Inc. (US) | Novo A/S; RA Capital Management, LLC; Adage Capital Management, L.P.; Sofinnova Ventures, Inc.; Alta Partners; Devon Park Bioventures; 3×5 Special Opportunity Partners; Salem Partners; RiverVest Venture Partners; Undisclosed Investors | 55 |
3 | 03/11/14 | Lumena Pharmaceuticals, Inc. (US) | New Enterprise Associates, Inc. (NEA); Adage Capital Management, L.P.; RA Capital Management, LLC; Pappas Ventures (formerly A.M. Pappas & Associates, LLC); RiverVest Venture Partners; Alta Partners | 45 |
4 | 03/13/14 | SAGE Therapeutics (US) | OrbiMed Advisors, LLC; EcoR1 Capital Management; Foresite Capital Management, LLC; Third Rock Ventures, LLC; ARCH Venture Partners; Undisclosed Investors | 38 |
5 | 03/25/14 | scPharmaceuticals, LLC (US) | 5AM Ventures; Lundbeckfond Ventures (LFI Life Science Investments) | 16 |
| 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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