Mergers and acquisitions
M&A activity in the pharma segment continued its declining trend, in both value and volume terms, while cross-border activity in the sector remained steady. The sector recorded 16 cross-border transactions in July 2012, against the previous six months’ average of 17 deals.
| M&A (including private equity) trend analysis |
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| Source: MedTRACK |
In one of the key deals announced during the month, UK-based AstraZeneca acquired neuroscience assets from Link Medicine Corporation, a US-based biopharmaceutical company. This transaction provides AstraZeneca with an opportunity to enter into the vital research space in Autophagy.
Autophagy is an intracellular process that clears and recycles misfolded proteins, which is an emerging area of research that can be applied to a range of neurodegenerative diseases, including Parkinson’s and Alzheimer’s disease.
| Top M&A deals (Jul 2012) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1 | Jul 16, 2012 | Par Pharmaceutical Companies, Inc. (US) | TPG Capital, L.P. (US) | 1,900.00 |
| 2 | Jul 3, 2012 | AgraQuest, Inc. (US) | Bayer CropScience AG (DE) | 425.00 |
| 3 | Jul 2, 2012 | BioCeuticals Pty, Ltd. (AU) | Blackmores (AU) | 40.98 |
| 4 | Jul 18, 2012 | Alimera Sciences, Inc. (US) | Palo Alto Investors; Sofinnova Ventures, Inc.; New Enterprise Associates, Inc. | 40.00 |
| 5 | Jul 17, 2012 | AMT Labs, Inc. (US) | Innophos, Inc. (US) | 19.50 |
| 6 | Jul 11, 2012 | Aprogen, Inc. (KR) | BINEX Co., Ltd (KR) | 14.02 |
| 7 | Jul 13, 2012 | Bavarian Nordic A/S (DK) | OrbiMed Advisors, LLC (US) | 11.79 |
| 8 | Jul 19, 2012 | Caprion Proteomics Inc. (CA) | Chicago Growth Partners (US) | 4.50 |
| Source: MedTRACK | ||||
The M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of previous six months (Jan 2012–Jun 2012). According to Datamonitor’s MedTRACK database, the pharma sector recorded 27 M&A transactions in July 2012, against the previous six months’ average of 49 transactions. In value terms, the sector recorded deals worth $2.5 billion against the previous six months’ average of $10.4 billion.
The Indian pharma sector witnessed no deals during July 2012, against the average of 1.8 deals over the previous six months.
| Venture financing trend analysis |
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| Source: MedTRACK |
Venture funding
Companies in the pharma sector raised $359.7 million during July 2012, against the previous six months’ average of $242.3 million. In terms of volume, the sector recorded 19 venture funded deals, compared to the previous six months’ average of 25.3 transactions.
| Top venture financing deals (July 2012) | ||||
| Rank | Date | Target | Investors | Deal value ($m) |
| 1 | Jul 25, 2012 | bluebird bio, Inc. (US) | Deerfield Partners; RA Capital Management, LLC; Ramius, LLC; ARCH Venture Partners; Third Rock Ventures, LLC; TVM Capital Group; Forbion Capital Partners; Shire plc; Undisclosed Investors | 60.00 |
| 2 | Jul 19, 2012 | Agile Therapeutics, Inc. (US) | Aisling Capital; Care Capital LLC; Investor Growth Capital; ProQuest Investments; Kaiser Permanente Ventures; Novitas Capital | 40.00 |
| 3 | Jul 23, 2012 | Chiasma, Inc. (US) | MPM Capital; Abingworth Management Limited; ARCH Venture Partners; 7 Med Health Ventures; F3 Ventures Limited; Fredric Price | 38.50 |
| 4 | Jul 5, 2012 | PsiOxus Therapeutics Limited (GB) | Lundbeckfond Ventures; Invesco Perpetual; SR One; Imperial Innovations Group PLC | 34.42 |
| 5 | Jul 23, 2012 | PTC Therapeutics, Inc. (US) | Credit Suisse First Boston Equity Partners, L.P.; HBM BioVentures, Ltd.; Vulcan Ventures; Celgene Corporation; Delphi Ventures; The Column Group; Novo A/S; Undisclosed Investors | 30.00 |
| Source: MedTRACK | ||||
Notes and definitions
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
