combined company

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

CytRx inks deal to buy Innovive in $21M acquisition

John Carroll — Mon, 09 Jun 2008 11:54:10 -0400

CytRx has inked a deal to buy Innovive Pharmaceuticals, adding its four experimental oncology therapies to its pipeline. The combined company will own a 49 perent interest in RXi Pharmaceuticals. The deal is priced at $21.3 million plus the assumption of liabilities. The combined company will advance therapies for oncology, Amyotrophic Lateral Sclerosis, stroke recovery and diabetic foot ulcers.

"The Innovive acquisition is a compelling strategic fit for CytRx and is expected to provide several key benefits. Innovive has an attractive oncology portfolio with the opportunity for relatively near-term drug approval with low regulatory risk," said Steven A. Kriegsman, CytRx president and CEO. "This acquisition improves our potential for near-term revenue while maintaining our longer-term emphasis on our molecular chaperone technology platform. The addition of this pipeline leverages our significant expertise in oncology drug development."

- read the CytRx's release

Gen-Probe bids $334 for Innogenetics

Tue, 03 Jun 2008 06:59:58 -0400

In a bid to create the world's largest stand-alone molecular diagnostics company, San Diego-based Gen-Probe has launched a $334 million cash bid for Belgium's Innogenetics. That's a seven percent premium over the June 2nd close and a six percent premium over a bid by Solvay. Gen-Probe says that if its bid is successful, the combined company will have more than a half billion dollars in annual revenue. A spokesman for Solvay says the company is aware of the counter-offer and will make its position known "in due time."

A merger with the European firm would give Gen-Probe a presence on the continent, where the diagnostics business has been growing at a more rapid pace than in the U.S.

- here's the release
- read the AFX report

Sonus, OncoGenex to merge

Wed, 28 May 2008 06:59:58 -0400

Bothell, WA-based Sonus Pharmaceuticals is merging with Canada's OncoGenex Technologies and will operate under the name OncoGenex Pharmaceuticals. OncoGenex's CEO Scott Cormack will head up the new company.

Sonus has been struggling since September when it pulled the plug on its lead therapy for breast cancer. Since then the company said it has been looking for ways to rebuild shareholder value. A merger with OncoGenex was the best way to do that, CEO Michael Martino said in a release.

The combined company has a strong oncology pipeline with three candidates in various stages of clinical development. Its lead candidate, OGX-011 for prostate cancer, is being evaluated in five Phase II clinical trials.

- see the merger release

Celgene CEO outlines future plans, post-Pharmion buyout

Fri, 14 Mar 2008 07:59:56 -0400

In an interview with the Star-Ledger, Celgene CEO Sol Barer laid out some of the basics in how it will integrate operations with Pharmion, a biotech Celgene paid $2.9 billion for. After some consolidation, he says, the combined company will have operations around the globe. And while he expects some new collaboration deals with other developers, don't look for anything too big in the near term.

"A lot of these (deals) are driven by specific opportunities that often are difficult to predict," says Barer. "There will be a period of time subsequent to the Pharmion acquisition where a lot of integration will go on. While that will not affect the smaller deals, it probably will affect the larger collaborations, which would be a lower priority while we're integrating the new company."

- check out the Q&A from the Star-Ledger

Dara BioSciences goes public in reverse merger

Wed, 13 Feb 2008 06:59:55 -0500

Dara BioSciences has completed a reverse merger with the nearly-defunct Point Therapeutics, taking the company public. In the deal Dara technically became a subsidiary of Point as a preliminary move to changing the combined company's name to Dara BioSciences. Point Therapeutics jettisoned its executive staff and all but two full-time employees after it shuttered a late-stage trial of talabostat for non-small cell lung cancer. Dara's shareholders control 96.4 percent of the combined company's stock.

- see this release
- read the report from MassHighTech

Related Articles:
DARA owners acquire troubled Point Therapeutics. Report
Dara licenses Bayer drugs. Report
More cuts at troubled Point Therapeutics. Report

Mitsubishi Chemical inks $4.3B Tanabe buyout

Thu, 01 Feb 2007 19:01:38 -0500

Mitsubishi Chemical Holdings is buying Tanabe Seiyaku for $4.3 billion in a deal that will double its drug sales. Analysts note that the combined company--which will create the fifth largest pharma company in Japan--will still be small by global pharma standards, but that the drug industry in Japan is under considerable pressure to consolidate as price controls in the country squeeze margins. The consolidation is intended to make them more competitive outside of Japan, a strategy that is seen as crucial to their long-term viability. Tanabe's best-selling drug is Remicade.

- here's the release on the deal

Related Article:
Tanabe in takeover talks with Mitsubishi. Report
Remicade approved for psoriatic arthritis. Report
Remicade get approval in Europe for UC. Report

Indevus in $120M deal to acquire Valera

Mon, 11 Dec 2006 19:01:37 -0500

Indevus Pharmaceuticals is buying Valera Pharmaceuticals in a stock deal valued at $120 million. The buyout, which includes milestone payments based on future performance, gives Indevus control of Valera's work in urology and endicronology. The two companies inked a co-promotion pact on the prostate cancer drug Vantas. Indevus is paying a 43 percent premium compared to the Monday close on Valera's stock.

"Upon closing, Indevus' robust product portfolio will include three marketed products and the combined company anticipates five new product launches within two years, including three products from Valera," said Glenn L. Cooper, chairman and chief executive of Indevus.

- see this press release
- here's the AP report on the buyout

Related Article:
Indevus halts research on pagoclone for PE. Report
Valera raises $34.8 million in IPO. Report

Valentis to merge with Urigen

Thu, 05 Oct 2006 20:01:36 -0400

Burlingame, CA-based Valentis announced that it would merge with Urigen through a stock swap. The company has been in a downward spiral since the drug developer announced that a Phase IIb trial of its lead drug candidate for peripheral arterial disease failed to show any advantage over a placebo. Valentis decided not to further develop the drug. Urigen, also based in Burlingame, is a privately-held specialty pharmaceutical focused on urology. Urigen will become a wholly-owned subsidiary of Valentis.

"The merger of Valentis and Urigen will create a new specialty pharmaceutical company dedicated to the development and commercialization of therapeutic products for urological disorders. The combined company will offer an attractive portfolio of products in clinical development," said Benjamin F. McGraw, III, Chairman, President and CEO of Valentis in a press release. The company is anticipating Phase IIb from another drug candidate at the end of this year.

- here's the report on the merger from The San Francisco Business Times

Related Article
Valentis future in doubt after Phase IIb failure. Report
Layoffs reported at Valentis. Report

Predix signs off on $307.5M licensing deal

Sun, 30 Jul 2006 20:01:38 -0400

Predix Pharmaceuticals has inked a deal to collaborate with Amgen on the development of orally available S1P1 modulators for autoimmune disease. Predix, which recently agreed to a merger with EPIX, gains $20 million up front and a haul of up to $287.5 million in milestone payments. Researchers will focus on existing compounds and new S1P1 modulators. Predix also retains the right to promote a product to specialty physicians for a selected indication.

"This collaboration provides Predix with the option to transform into a fully integrated pharmaceutical company by exercising our co-promote option with Amgen," said Chen Schor, chief business officer of Predix. "This deal comes as we are in the process of finalizing our merger with EPIX and will further enable the combined company to pursue this research program along with our other development programs."

- read the AFX report on the deal

Bruker BioSciences to buy Bruker Optics

Mon, 17 Apr 2006 20:01:37 -0400

Bruker BioSciences has agreed to buy Bruker Optics, which specializes in molecular spectroscopy, for $135 million in cash and stock. Both companies are majority-owned by five members of the Laukien family. In a release, Bruker stated that "the combined company will have a broad range of mass spectrometry, X-ray analysis and molecular spectroscopy technology platforms to provide a unique combination of complementary systems for chemical and materials analysis, as well as for proteomics." During the past year Bruker Optics had about $78 million in revenue.

- see the release on the buyout for more

PharmAthene to merge with Siga Technologies

Mon, 13 Mar 2006 19:01:38 -0500

PharmAthene and Siga Technologies plan to merge and create a company focused on biodefense, with products for "anthrax, smallpox and chemical nerve agents, as well as a robust pipeline of therapeutic and prophylactic drug candidates targeting Category A biowarfare agents and emerging infectious diseases." As part of the deal, PharmAthene with give Siga $3 million in interim financing. The combined company will operate as PharmAthene, with Siga shareholders owning 32 percent of the shares.

"SIGA-246, the most advanced smallpox treatment currently in development, is a small molecule orally-active antiviral therapeutic, which ideally complements PharmAthene's Valortim, a monoclonal antibody in development for the prevention and treatment of anthrax infection, and Protexia, a recombinant bioscavenger in development for chemical nerve agent poisoning," said PharmAthene CEO David P. Wright. "Our combined biodefense portfolio will target three of the top five biodefense priorities under Project BioShield. SIGA-246 has already shown promise in multiple animal models, and PharmAthene's Valortim is currently undergoing human safety testing and is positioned for procurement."

- here's the press release for more information

Angiotech to acquire AMI in $785M buyout

Tue, 31 Jan 2006 19:01:39 -0500

Angiotech Pharmaceuticals will fork over $785 million in cash to acquire American Medical Instruments, which makes needles and surgery tools. For Angiotech, the deal will allow it to expand on its offerings of drug coatings for medical devices and boost its sales activities. AMI has global operations in 12 locations and four countries, including over 550,000 sq.ft. of modern manufacturing operations. Post transaction, Angiotech will have two specialty sales forces operating on a worldwide basis; one focused primarily on general surgery, plastic surgery, and ophthalmic surgery, and the second focused on vascular surgery, interventional radiology and tumor biopsy.

"The convergence of Angiotech's exceptional research and development efforts and AMI's expertise in operations, manufacturing and sales uniquely positions the combined company to develop and commercialize the next generation of medical devices and combination products," said Dr. William L. Hunter, CEO of Angiotech.

- read this AP report for more information

CancerVax agrees to merge with Micromet

Mon, 09 Jan 2006 19:01:37 -0500

Three months after poor Phase III data forced it to suspend work on its lead drug candidate, Carlsbad-based CancerVax has agreed to team up with Germany's Micromet in a buyout valued at $126.7 million. The deal gives Micromet better access to the U.S. market as well as a preclinical candidate for solid tumors. Micromet stockholders will own approximately 67.5 percent of the combined company after the deal is completed. R&D work will be consolidated in Germany.

"This transaction will allow Micromet to access U.S. capital markets, which is essential in our efforts to accelerate the development of our novel, antibody-based drug compounds based on our proprietary BiTE, or bi-specific T cell engager, and single-chain antibody drug development platforms," said Christian Itin, Ph.D., CEO of Micromet. "It also strengthens our management team and financial position, allows us to leverage CancerVax's existing U.S. public company infrastructure, and adds to our product development portfolio."

- see this article for more on the proposed CancerVax-Micromet merger

Merger forms new drug company to market Abraxane

Sun, 27 Nov 2005 19:01:37 -0500

American Pharmaceutical Partners is merging with its parent company and creating a single company called Abraxis BioScience. The parent company--American BioScience--owns 64.4 percent of American Pharmaceutical. The combined company's lead product is the cancer drug Abraxane, which the FDA approved earlier this year. "We believe this merger is a unique opportunity to combine the strengths of a development-stage biotechnology company with those of a growing and profitable injectable pharmaceutical business to create a fully integrated, global biopharmaceutical leader," said Soon-Shiong, the executive chairman of American Pharmaceutical and the chairman and CEO of American BioScience.

- read this report from TheStreet.com for more information

pSivida inks deal to acquire Control Delivery Systems

Sun, 02 Oct 2005 20:01:35 -0400

Australia's pSivida has inked a deal to buy Control Delivery Systems, a drug delivery company. CDS stockholders will wind up with 40 percent of the shares of a combined company, giving the deal a $104 million value. The Australian company also gains a new operating hub in the biotech-rich Boston area.

- read this report from Small Times for more

Corgentech to merge with AlgoRx; focus on pain, inflammation

Sun, 25 Sep 2005 20:01:38 -0400

South San Francisco-based Corgentech is merging with AlgoRx Pharmaceuticals in a stock swap, jointly expanding a pipeline of new drugs that is focused on pain management and inflammation. The combined company will have four products in its pipeline. AlgoRx's portfolio of pain management drug candidates includes ALGRX 3268, which is in Phase III clinical trials; ALGRX 4975, which is in Phase II clinical trials; and ALGRX 1207, which is soon to enter the clinic. Corgentech continues to develop NF-kappaB Decoy, which is in two Phase I/II trials for the treatment of eczema.

"By combining the financial resources of the two companies and the expertise of the two management teams, which include significant experience in regulatory affairs, clinical trials management and product marketing and commercialization, we believe that our late-stage products in pain management will be more expeditiously commercialized," stated Ronald M. Burch, M.D., Ph.D., CEO of AlgoRx. "This merger may enable us to file a New Drug Application (NDA) for our lead product candidate, ALGRX 3268 for topical local anesthesia in 2006."

- read this press release for more information

Teva buying rival Ivax for $7.4B

Sun, 24 Jul 2005 20:01:39 -0400

Shares of Ivax were on the rise this morning after Israeli generic drug maker Teva said it would buy the rival US pharmaceutical company for $7.4 billion in cash and stock. Ivax shareholders will get either $26 in cash for each share or .84 of a share in the new company. The combined company will control more than $7 billion in annual sales of generic drugs and have 25,000 employees. The deal -- the latest in a host of mergers and acquisitions to sweep the biopharma industry -- is expected to close late this year or early next.

- read this report from Canada.com for more

Clinical Data buying Genaissance

Mon, 20 Jun 2005 20:01:39 -0400

In a move to penetrate the molecular diagnostics market, Clinical Data has struck a deal to buy Genaissance Pharmaceuticals for $56 million in stock. Clinical Data makes diagnostic tools for laboratories and doctors offices and sees the acquisition as a natural fit. After the deal closes, Genaissance shareholders will own about 40% of the combined company. Genaissance has two molecular tests on the market with several more in development.

- read this story from the AP for more

Chromos, Targeted Molecules to merge

Wed, 25 May 2005 20:01:35 -0400

Canada's Chromos Molecular Systems is merging with San Diego-based Targeted Molecules in a deal valued at $4 million. Chromos will issue 20.1 million shares to investors in Targeted Molecules for slightly less than half of the combined operation.

"We are excited about the acquisition of TMC and their lead monoclonal antibody product candidates, which address significant markets in chronic inflammation and acute thrombosis," said Alistair Duncan, who will lead the combined company as president and CEO. "Not only will the ACE System be used to manufacture these and other products, but revenues generated by our cell engineering business will support the clinical development of these antibodies. We anticipate entering the clinic with our first product candidate in late 2006."

- read this press release for more on the merger