M&A activity in the pharmaceutical sector was focused on strengthening product portfolio to complement existing products.
In line with the above trend, Roche agreed to acquire InterMune, a US-based biotechnology company, for $8.3 billion.
Figure: M&A (including private equity) Trend Analysis |
 |
| Source: Medtrack |
This acquisition would allow Roche to strengthen its respiratory portfolio globally and complements its strengths in pulmonary therapy.
In addition, Roche would gain access to InterMune’s product Pirfenidone, a therapeutic for the treatment of idiopathic pulmonary fibrosis.
Top M&A Deals (Aug 2014) | ||||
Rank | Date | Target | Acquirer | Deal value ($m) |
1 | 08/24/14 | InterMune, Inc. (US) | Roche Holding, Ltd. (CH) | 8300.00 |
2 | 08/25/14 | Beijing Jialin Pharmaceutical Co., Ltd. (CN) | Shandong Luye Pharmaceutical Co., Ltd..(CN) | 597.94 |
3 | 08/13/14 | TARIS Holdings LLC – LiRIS | Allergan, Inc. (US) | 587.50 |
4 | 08/04/14 | Santaris Pharma A/S (DK) | Roche Holding, Ltd. (CH) | 450.00 |
5 | 08/06/14 | Dream Pharma Corp. (KR) | Alvogen Pharma US, Inc. (US) | 187.00 |
6 | 08/05/14 | TheraDoc, Inc. (US) | Premier, Inc. (US) | 117.00 |
7 | 08/27/14 | Bellicum Pharmaceuticals, Inc. (US) | RA Capital Management, LLC; Perceptive Advisors LLC; Jennison Associates LLC; Sabby Capital; Ridgeback Capital Management LLC; VenBio Select Fund; Redmile Group; AJU IB Investment Co., Ltd.; AVG Ventures, LP; Remeditex Ventures, LLC; Undisclosed Investors | 55.00 |
8 | 08/11/14 | Alpine Biosciences, Inc. (US) | Oncothyreon, Inc. (US) | 27.00 |
9 | 08/19/14 | Xenotis Pty., Ltd. (AU) | LeMaitre Vascular, Inc. (US) | 7.70 |
10 | 08/08/14 | ViaCyte, Inc. (US) | Undisclosed Investors | 5.40 |
| Source: Medtrack | ||||
In another key deal, Luye Pharma Group agreed to acquire an aggregate 57.98 per cent equity interest in Beijing Jialin Pharmaceutical, a China-based pharmaceutical company, for $597.94 million. The addition of Beijing Jialin’s product ALE (atorvastatin calcium tablets) would supplement Luye Pharma’s existing cardiovascular product portfolio.
Figure: Venture Financing Trend Analysis |
 |
| Source: Medtrack |
This acquisition would also further strengthen Luye Pharma’s market position and would have a competitive advantage in the cardiovascular therapy region, especially in the area of lipid regulators, and thus maximise its size and strengths swiftly.
M&A activity in the pharma sector remain steady in volume and decreased in value terms, when compared to the average of the previous six months’ (February 2014 – July 2014).
Top Venture Financing Deals (Aug 2014) | ||||
Rank | Date | Target | Investors | Deal value ($m) |
1 | 08/25/14 | Civitas Therapeutics, Inc. (US) | Adage Capital Management, L.P.; OrbiMed Advisors, LLC; Rockspring Capital; Sofinnova Ventures, Inc.; Partner Fund Management, L.P.; Alkermes plc; Bay City Capital LLC; Canaan Partners; Fountain Healthcare Partners; Longitude Capital Management Co., LLC; RA Capital Management, LLC; Wellington Management Company, LLP | 55.0 |
2 | 08/19/14 | Dermira, Inc. (US) | Bay City Capital LLC; New Enterprise Associates, Inc. (NEA); Canaan Partners; UCB S.A.; Apple Tree Partners; Aisling Capital; Rockspring Capital; Sabby Capital; Undisclosed Investors | 51.0 |
3 | 08/25/14 | ALDEA Pharmaceuticals, Inc. (US) | Canaan Partners; Correlation Ventures; RusnanoMedInvest; WuXi PharmaTech Corporate Venture Fund | 24.0 |
4 | 08/07/14 | Tolero Pharmaceuticals, Inc. (US) | Fred Alger Management, Inc. (Alger); Undisclosed Investors | 14.2 |
5 | 08/11/14 | Vyome Biosciences Pvt., Ltd. (IN) | Sabre Partners; Aarin Asset Advisors, LLP (formerly Aarin Capital Partners); Kalaari Capital | 8.0 |
| Source: Medtrack | ||||
According to Datamonitor’s Medtrack database, the pharma sector recorded 29 M&A transactions in Aug 2014, against the previous six months’ average of 28.8 transactions. In value terms, the sector recorded deals worth $10.4 billion, against the previous six months’ average of $25.3 billion.
The Indian pharma sector witnessed no deals during August 2014, against the average of 0.8 deals over the previous six months.
Venture funding
Companies in the pharma sector raised $166.5 million during Aug 2014, against the previous six months’ average of $260 million. In terms of volume, the sector recorded 10 venture funded deals, when compared to the previous six months’ average of 14.5 transactions.
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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