UCB to acquire Schwarz in latest buyout deal

Belgium's UCB is buying Germany's Schwarz Pharma for about $5.6 billion, the third major drug company deal in Germany in five days. Together, the two companies will enjoy about €3.3 billion in revenue and an R&D budget of €770 million. The merger will position the company to play partner with others in drug development around the world. According to UCB, "the enlarged UCB would be a more attractive partner for licensing deals and R&D collaboration than either Schwarz Pharma or UCB alone."

Analysts say the string of deals--including Merck KGaA's offer for Serono--highlights the clear need of  mid-sized drug companies in Europe to merge in order to compete against the likes of Pfizer and GlaxoSmithKline. It takes very deep pockets to bring a drug to market. These deals also represent the exits of major family holdings which were seen as a drag on the companies' ability to expand.

- read the report on the buyout from The Scotsman

Suggested Articles

Bausch Health is paying $10 million upfront for the option to acquire Allegro Ophthalmics’ eye disease assets, with a promise of $40 million to come.

Anthony Coyle, Ph.D., has signed up to run Repertoire Immune Medicines’ R&D.

The IPO haul will set Kronos up to start a registrational phase 2/3 trial of a first-line AML drug licensed from Bischofberger's former employer.