Mergers and Acqusitions

Analysts predict more M&A as capital shrinks

John Carroll — Thu, 03 Jul 2008 10:07:13 -0400

A shortage of new money is likely to drive more and more life sciences companies into mergers and acquisitions, say some of the industry's top analysts. Money raised from IPOs, venture capital companies and stock sales dropped to a meager $6.5 billion in the first half of this year, less than a third of the amount posted in the first half of last year. And they cited Invitrogen's acquisition of Applied Biosystems as a prime example of what lies ahead.

Two bright spots: Expanding markets in China and India will help the field as the U.S. economy softens and federal funding of the NIH will grow regardless of who is elected.

- check out the AP report

Lilly pays $35M to land TransPharma pact

John Carroll — Thu, 12 Jun 2008 10:57:39 -0400

Eli Lilly is forking over a $35 million upfront payment to nail down the worldwide licensing rights to TransPharma Medical's ViaDerm-hPTH osteoporosis product and a non-exclusive license to its ViaDerm drug delivery system. The two developers will collaborate on the ongoing Phase II trial and then Lilly will take over development responsibility. The pact includes undisclosed milestones and royalties.

"This agreement expands the scope of our osteoporosis program with a novel, patient-centered approach that builds upon our success with Evista and Forteo," commented Dr. Gwen Krivi, vice president of Lilly Research Labs. "As we focus on developing a transdermal PTH product with TransPharma, we will leverage our combined expertise, with the goal of providing patients with a product that meets their desire for an alternative to injection for PTH."

- read the release
- check out the AFX report

Daiichi Sankyo acquires Ranbaxy in $4.6B deal

John Carroll — Wed, 11 Jun 2008 11:12:29 -0400

Ranbaxy's drive to become a research-based drug developer and major manufacturer has led it straight into the welcoming arms of Japan's Daiichi Sankyo, which announced it is buying a majority stake in the Indian pharma company. After Sankyo completes a buyout of the founding Singh family's stake in the company, Ranbaxy will become a subsidiary operation. The deal is valued at $4.6 billion and will create a combined company worth about $30 billion.

That move positions Daiichi Sankyo to become a major supplier of low-priced generics to Japan's aging population and accelerates a trend by Japanese pharma companies to enter emerging Asian markets, where they see much of their future growth. The acquisition stunned investors and analysts alike, who were caught off guard by a bold move from a conservative player in the industry.

- check out this release for more on the deal
- read the report from The Times

Ipsen inks a string of deals in expansion effort

Thu, 05 Jun 2008 06:59:58 -0400

France's Ipsen is buying out Tercica in a $404 million deal, one of three new pacts designed to make Ipsen a billion-dollar a year player in the U.S. Ipsen will pay $9 a share for every share of Tercica it doesn't already own. That's more than double Tercica's $4.41 a share close yesterday. Like a lot of developers, Tercica's been losing money. But the biotech recently launched Somatuline for acromegaly, a pituitary gland disorder.

In a separate deal, Ipsen is buying out Vernalis' U.S. subsidiary, gaining the North American rights to Apokyn. And it inked a deal to acquire Octagen's OBI-1, which is being developed to treat hemophilia. The Octagen deal includes $10.5 million upfront and up to $26 million in milestones.

Taken together, Ipsen says the new acquisitions will position Ipsen to become a significant commercial player in the U.S.

- read Ipsen's release for more

Takeda gains RNAi tech with $1B Alnylam deal

Tue, 27 May 2008 06:59:58 -0400

Takeda's quest to expand in the U.S. market--and off-set expiring patents on big drugs--continues. The Japanese company announced today a $1 billion alliance with RNAi company Alnylam. The deal covers RNAi therapeutics in the fields of oncology and metabolic disease with the option to expand to additional therapeutic areas in the future. Alnylam gets $100 million in up-front and additional $50 million in near-term technology transfer payments. Takeda can expand the partnership in the future to include additional fields, with a payment of $50 million to Alnylam for each additional field. Finally, Alnylam will receive $171 million in milestones, along with royalties, for each product developed as part of the deal.

"We believe this alliance will accelerate our initiatives to establish the foundation for RNAi drug discovery supported by Alnylam's platform technologies and know-how. We expect that our product portfolio will be enhanced by the addition of RNAi therapeutics to our current small molecule and anti-body research platforms," said Takeda's president Yasuchika Hasegawa. Just two months ago Takeda forked over $8.8 billion dollars to buy Millennium Pharmaceuticals, bolstering its oncology pipeline.

- here's Takeda's release
- read the Wall Street Journal article for more

Biotech M&A has yet to reach its peak

Fri, 09 May 2008 06:59:56 -0400

In analyzing the PowerShares Dynamic Biotech & Genome ETF, a fund made up of primarily small- and medium-cap biotech stocks, Seeking Alpha notes that Big Pharma's appetite for biotech acquisitions is far from satisfied. Despite the fact that Pharma's interest in biotech reached an all-time high last year, the conditions are right for an even bigger run on biotech M&As in the near future. Pharma companies are trying to fill weak pipelines and have the money on hand to do it. Add to that the fact that many small biotechs can be bought for a bargain, and you have the perfect conditions for an M&A free-for-all.

Take, for instance, Takeda's recent $8.8 billion bid for Millennium. That deal, analysts say, could indicate a run of biotech buyouts. A run was also predicted last year with AstraZeneca's $15.6 billion MedImmune buyout, "[b]ut the wave hasn't come, even though Big Pharma is sitting on a pile of cash and struggling with weak pipelines." While there's no question Big Pharma is snapping up promising developers left and right, even more deals could be on the way.

- see the Seeking Alpha report

GSK buys Sirtris for $720M

Wed, 23 Apr 2008 06:59:58 -0400

GlaxoSmithKline is acquiring Cambridge, MA-based Sirtris Pharmaceuticals for $720 million. GSK will pay $22.50 per share for the company--an 84 percent premium to Sirtris's closing price Tuesday. GSK says that the buyout will boost its metabolic, neurology, immunology and inflammation research efforts by establishing a presence in the field of sirtuins--a class of enzymes that may be involved in the aging process.

Sirtris has grabbed headlines for it work in the field of aging. Earlier this year the company presented positive, early-stage data for its closely-watched therapy based on resveratrol, an ingredient in red wine that has been linked to increased longevity. In a small diabetes trial the drug delivered positive safety data and demonstrated its ability to cut blood glucose levels.

"Modulation of this family of enzymes is a potentially transformative science that could address diseases associated with metabolism and aging such as diabetes, muscle wasting, and neurodegeneration," commented Moncef Slaoui, Chairman GSK R&D. "This acquisition continues GSK's strategy of pursuing the best new science, externally or internally, to bring new medicines to patients and value to the GSK pipeline." Sirtris will remain an autonomous unit. Sirtris was a 2007 Fierce 15 company.

- see GlaxoSmithKline's release
- read this Wall Street Journal report for more

ALSO: GSK is hoping to make a splash at this year's ASCO meeting. GSK release

PLUS: GSK reported its quarterly earnings. Report

Pfizer snaps up Serenex in buyout

Mon, 03 Mar 2008 06:59:58 -0500

Pfizer has beefed up its prospects in the cancer arena with today's buyout of Durham, NC-based Serenex. The biotech has been developing drugs for tumors and cancers of the blood and bone marrow. But Pfizer also acquires--for an undisclosed sum of money--the company's drug discovery technology.

Serenex has raised about $81 million in venture funds to advance technology developed at Duke University. The biotech has one drug, SNX-5422, an oral Hsp90 inhibitor, in early-stage development.

- see this release for more
- check out the AP report
- here's the Dow Jones story

Related Articles:
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Speculation soars over Pfizer's interest in biotech. Report
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Antisoma scouts for new therapies to add to pipeline

Thu, 21 Feb 2008 06:59:56 -0500

Antisoma is sending out signals that it's looking for new acquisitions to add to its pipeline. "With a strong balance sheet, we are well placed to invest in and add value to our current pipeline and to add further promising drugs to our portfolio when opportunities arise," Antisoma Chairman Barry Price told The Guardian. The UK biotech has been making significant headway with ASA404, which has been in trials as an anti-cancer therapy. Novartis partnered up on the program last April in a deal valued at around $900 million.

- check out the report in The Guardian

Related Articles:
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BioCon buys stake in German pharma company

Fri, 15 Feb 2008 06:59:56 -0500

Fulfilling an earlier promise to acquire a company, Bangalor-based BioCon has spent €30 million to purchased a 70 percent stake in German pharmaceutical company AxiCorp. The deal will allow BioCon to market its injectable insulin, Insugen, in Europe; it will be followed by other generics, biosimilars and biologics.

In January BioCon indicated that it was exploring ways to promote its products in North America and Europe, and planning to spin off its clinical research group. According to Biocon's release, this marks the first of several acquisitions Biocon has planned following the sale of its enzymes business last year. "We are very focused on becoming a key player in insulin globally," said a BioCon spokesperson. "We can deliver through a combination of Biocon's low cost manufacturing and AxiCorp's low cost distribution."

- here's the release
- and check out this Economic Times report

Related Articles:
Biocon CEO plans acquisition, spin-off. Report
Biocon plots new deals after sale of enzymes business. Report
India focuses on biosimilars. Report

Credit squeeze begins to have an impact on VC

Thu, 07 Feb 2008 06:59:57 -0500

The Star-Ledger offers a new perspective on the investment scene in biotechnology. Analysts tell the newspaper that the credit crunch has put a squeeze on private equity groups who can no longer use cheap debt to buy into developers and then flip them. As a result, VCs are accepting smaller returns on smaller deals. With Big Pharma on the hunt for acquisitions, venture groups are less likely to relinquish shares before a big buyout. And buyouts have replaced IPOs as a key funding stage for biotechs.

- read the report from the Star-Ledger

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Will private equity get a crush on biotechnology? Report
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Top 20 VC deals of 2007. Report

Teva snaps up CoGenesys in $400M buyout

Tue, 22 Jan 2008 06:59:56 -0500

Teva has whetted at least part of its appetite for fresh acquisitions with the announcement this morning that it is buying CoGenesys for $400 million in cash. The Israeli generic drug company says the buyout will give it a better position to compete in the fledgling biogeneric field. CoGenesys has drug candidates in the pipeline for cardiovascular disease, multiple sclerosis, diabetes and autoimmune diseases. It uses technology that retains therapies in the body for a longer period of time, reducing dosage requirements.

"CoGenesys' acquisition reflects our commitment to capture the significant long-term prospects we believe the biogenerics market will offer," said Teva CEO Shlomo Yanai in a statement. CoGenesys was a 2007 Fierce 15 company.

- see this release
- read the AP report

ALSO: It took a much sweeter offer, but Roche has prevailed in its bid to buy Ventana Medical Systems. Report

Related Articles:
Teva earmarks $1B for India. Report
Waiting game continues for biogenerics. Report
Dr. Reddy's make risky biogenerics move. Report

Genzyme wins Isis pact with $1.9B bid

Tue, 08 Jan 2008 06:59:58 -0500

Shares of Isis Pharmaceuticals rocketed up 45 percent after the biotech announced that Genzyme had signed on as a partner to develop the promising cardiovascular drug mipomersen, its flagship product. Genzyme is paying a whopping $175 million in an upfront fee and will buy five percent of the company. Potential milestone payments could make the deal worth more than $1.9 billion. Genzyme survived a bidding war that involved 10 companies interested in mipomersen, according to Isis.

The drug blocks a gene that opens the gate to cholesterol in the blood. It's now about to enter Phase III trials after posting some impressive data for lowering bad cholesterol. Isis can now budget a maximum of $75 million in new discovery costs for the program with Genzyme shouldering the rest of the load. Genzyme, which has emerged as an aggressive biotech powerhouse, also gets "preferred access" to other Isis therapies in the future.

- see this release on the deal
- here's the article from The San Diego Union-Tribune

Related Articles:
Genzyme on buyouts: Thanks but no thanks. Report
Is Carl Icahn out to buy Genzyme? Report
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Idera shares surge on Merck KGaA pact

Wed, 19 Dec 2007 06:59:58 -0500

Idera is pocketing a $40 million up front fee from Merck KGaA and hopes to make an additional $381 million in milestones from licensing its technology for cancer therapies. The German Merck gains exclusive rights to Idera's two most advanced Toll-like Receptor 9 (TLR9) agonists for cancer--IMO-2055 and IMO-2125--for all uses with the exception of cancer vaccines. These Toll-like receptors are sentinels for chemicals in pathogens for cancer, infectious diseases, respiratory and autoimmune disorders. IMO-2055 has been involved in Phase I studies for solid tumors that have been unresponsive to standard therapy. Shares of Idera surged on the news.

- see the release
- here's the AP's report on the deal

Related Articles:
Idera inks $455M pact for Merck vaccines. Report
Merck KGaA CEO eyes new acquisitions. Report
Mylan inks $6.6B deal for Merck's generic drug biz. Report
Merck KGaA buying control of Serono. Report

ALSO NOTED: CMC to boost production at Bothell facility; Eisai buys antibody; Vectura pockets milestone, equity pay; and much m

Tue, 04 Dec 2007 06:59:50 -0500

> The Copenhagen-based CMC Biopharmaceuticals says it plans to increase production of therapeutic proteins after buying the former Icos's plant in Bothell. Icos was acquired at the beginning of the year by Eli Lilly. Report

> Japan's Eisai has acquired the rights to an antibody therapy for Alzheimer's from Sweden's BioArtic Neuroscience. Report

> Skystar BioPharmaceutical has established a new research and development center in Shanghai. Release

> Vectura Group has picked up €15 million from a milestone payment and equity investment by Boehringer Ingelheim. Report

> Biomarin Pharmaceutical and IGAN Biosciences have started to develop an IgA protease for treating kidney disorder. Report

> Blocking a single critical protein reversed the effects of aging on the skin of mice, suggesting that researchers may be on to a short-term therapy that could help older people heal from an injury. Report

> Scientists at Johns Hopkins were able to damaged skulls by transplanting human embryonic stem cells directly to the site of massive injuries. Report

> Merck issued its initial earnings outlook for 2008 today, and in it specifies Fosamax sales at $1.1 billion to $1.4 billion, down from $2.9 billion to $3.1 billion in 2007. Report

> Look, world--our house-cleaning is working. That's what China's drug regulators are saying today with a new, statistics-filled report. Report

And Finally... In one of the most closely watched research programs at a biotech company, Sirtris has unveiled three new chemicals that could play a big role in fighting the effects of aging and resisting diabetes. Report

Burrill bullish on M&As

Maureen Martino — Mon, 03 Dec 2007 13:14:56 -0500

G. Steven Burrill is touting the (relative) success of his Burrill Biotech Select Index compared to the swooning Nasdaq and sounds quite bullish about the impact of M&As in biotech. "M&A has become a staple in biotech land," he says. "There is pressure on the management of pharmaceutical and biotech companies to perform and increase shareholder value and M&A has become the tool of choice to do this. Not only are we seeing biotechs acquiring biotechs but the pending expiry of patents on a number of blockbuster pharmaceuticals has stoked demand by big pharma for small innovative biotechs that can be easily acquired and integrated."

- see this release for more

Struggling GPC looking for merger or acquisition

Wed, 28 Nov 2007 06:59:58 -0500

Wanted: Private drug developer interested in partnering with struggling biotech specializing in cancer therapies. GPC Biotech essentially posted that message when its CEO announced that he is looking to partner up with a private biopharma player that would see extra value in the drug developer's listings in the U.S. and German markets. CEO Bernd Seizinger tells Financial Time Deutschland that he plans to stay on with the company as it tries to survive the late-stage failure of satraplatin. In recent days GPC has laid off almost half of its staff. Any alliance the company makes would focus exclusively on cancer therapies, he says. And Seizinger denies that he ignored warnings from the FDA when he pushed ahead with satraplatin. GPC has about $90 million in cash reserves.

- read the report from Thomson Financial

Related Articles:
More takeover targets for Big Pharma. Report
Troubled GPC cuts staff, looks for M&A deals. Report
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GPC shares crater on Phase III cancer failure. Report
FDA delay forces cutbacks at GPC Biotech. Report
GPC yanks FDA application for satraplatin. Report

BMS sources discount chance of Sanofi buyout

Wed, 28 Nov 2007 06:59:56 -0500

Dow Jones is quoting sources close to Bristol-Myers Squibb who say that a buyout by Sanofi-Aventis is not in the cards. BMS is betting on its pipeline for its future expansion, says the source. The possibility of a tie-up has caused considerable buzz in the M&A field, especially as Sanofi-Aventis has indicated its interest in snapping up a pharma and biotech company. A deal between BMS and Sanofi looked particularly compelling because it would have expanded the French company's U.S. reach while advancing relations between two companies with a long history of collaborating on drug projects. One of those projects includes the blockbuster Plavix, which was the subject of a closely watched patent lawsuit and will remain under patent protection until 2011.

- check out the CNN report

Related Articles:
Report: Sanofi-Aventis inks preliminary deal for BMS. Report
Patent victory reignites rumors of BMS takeover. Report
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Analysts buzzing about possible Bristol-Myers sale. Report
More details emerge on secret Plavix pact. Report

Pfizer buys Coley for $164M

Fri, 16 Nov 2007 06:59:58 -0500

In what is sure to be one of many acquisitions to come, Pfizer has agreed to purchase Wellesley, MA-based Coley Pharmaceuticals for $8 per share, bringing the total deal to $164 million. Pfizer will gain access to Coley's vaccine adjuvant technology. Coley also has a new class of immunomodulatory drug candidates--TLR Therapeutics--which work by stimulating or blocking important immune system receptors.

"This acquisition is an important component of Pfizer's vaccine strategy and reflects our commitment to research new and more effective vaccines to prevent infectious diseases and to treat cancers and other debilitating conditions. Coley's innovative product candidate portfolio and technology have the potential to significantly enhance future vaccine and immunotherapeutic approaches to a broad range of diseases..." said Jeffrey B. Kindler, chairman and CEO of Pfizer.

- see Pfizer's release for more

Related Articles:
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Is Carl Icahn out to buy Genzyme?

Thu, 15 Nov 2007 06:59:57 -0500

Rebel investor Carl Icahn (photo) has bought a stake in Genzyme, spurring speculation that he may be preparing to give it the kind of bear hug witnessed by ImClone and Biogen Idec. Only weeks ago Icahn was credited with putting Biogen Idec, one of the biotech industry's biggest companies, into play. Now its investment firm has snapped up 1.5 million shares of the aggressive Genzyme, which has made billions on its reputation for designing new therapies for rare conditions. Icahn has always succeeded best by acquiring shares in companies that he feels are significantly undervalued, and finding one way or another to get the stock price up. For now, no one with either organization is talking--but you can expect plenty of speculation in the months ahead.

- check out the Boston Globe report

Related Articles:
Should Pharma take the M&A cure? Report
Who's next on the biotech buyout hit list? Report
Boston officials herald big Genzyme expansion. Report
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