Mergers and acquisitions
M&A activity in the pharmaceutical sector continued to focus on expanding product pipeline as companies were looking for opportunities to add complementary programmes.
In line with the above trend, US-based Gilead Sciences agreed to acquire YM BioSciences, a Canada-based drug development company, for approximately $510 million. This acquisition represents an opportunity for Gilead Sciences to add a complementary clinical programme in the area of haematologic cancers.
| M&A (including private equity) trend analysis |
| Source: Medtrack |
With this transaction, Gilead Sciences will gain access to YM Biosciences’ CYT387, an orally administered inhibitor of both the JAK1 and JAK2 kinases, which have been implicated in a number of haematological and immune cell disorders including myeloproliferative neoplasms and inflammatory diseases as well as certain cancers.
In another key deal, Pernix Therapeutics agreed to acquire Somaxon Pharmaceuticals, a US-based specialty pharma company for $25 million. This transaction is an important step in the growth strategy of Pernix, which is expected to continue to expand its product portfolio.
| Top M&A deals (Dec 2012) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1 | 12/12/12 | YM BioSciences, Inc. (CA) | Gilead Sciences, Inc. (US) |
510.00
|
| 2 | 12/10/12 | deCODE genetics, Inc. (IS) | Amgen, Inc. (US) |
415.00
|
| 3 | 12/31/12 | JHP Pharmaceuticals, LLC (US) | Warburg Pincus LLC; JHP Holdings LLC |
195.00
|
| 4 | 12/12/12 | Incline Therapeutics, Inc. (US) | The Medicines Company (US) |
18.00
|
| 5 | 12/06/12 | Amarin Corporation plc (IE) | Pharmakon Advisors, LP (US) |
100.00
|
| 6 | 12/14/12 | H. Lundbeck A/S – Product portfolio (DK) | Recordati S.p.A. (IT) |
100.00
|
| 7 | 12/16/12 | AbD Serotec (US) | Bio-Rad Laboratories, Inc. (US) |
69.78
|
| 8 | 12/20/12 | Nuron Biotech (US) | Healthcare Royalty Partners II, L.P (US) |
30.00
|
| 9 | 12/11/12 | Somaxon Pharmaceuticals, Inc. (US) | Pernix Therapeutics Holdings, Inc. (US) |
25.00
|
| 10 | 12/10/12 | Verenium Corporation (US) | Athyrium Opportunities Fund (US) |
22.50
|
| Source: Medtrack | ||||
With this acquisition, Pernix will gain access to Silenor, an approved product for the treatment of insomnia characterised by difficulty with sleep maintenance.
M&A activity in the pharma sector increased in volume terms and decreased in value terms, when compared to the average of previous six months’ (Jun 2012–Nov 2012). According to Datamonitor’s Medtrack database, the pharma sector recorded 37 M&A transactions in December 2012, against the previous six months’ average of 33 transactions. In value terms, the sector recorded deals worth $1.7 billion against the previous six months’ average of $4.1 billion.
The Indian pharma sector witnessed no deals during December 2012, against the average of 0.6 deals over the previous six months.
| Venture financing trend analysis |
| Source: Medtrack |
Venture funding
Companies in the pharma sector raised $365.1 million during December 2012, against the previous six months’ average of $357.4 million. In terms of volume, the sector recorded 17 venture funded deals, compared to the previous six months’ average of 25 transactions.
| Top venture financing deals (Dec 2012) | ||||
| Rank | Date | Target | Investors | Deal value ($m) |
| 1 | 12/20/12 | Ultragenyx Pharmaceutical, Inc. (US) | Adage Capital Management L.P. ; TPG Biotech; Fidelity Biosciences; HealthCap; Pappas Ventures | 75.00 |
| 2 | 12/17/12 | Regado Biosciences, Inc. (US) | RusnanoMedInvest ; Baxter Ventures ; Edmond de Rothschild Investment Partners ; Domain Associates, L.L.C.; Quaker Partners ; The Aurora Funds, Inc. ; Caxton Advantage Life Sciences Fund, LP | 51.00 |
| 3 | 12/11/12 | 23andMe, Inc. (US) | Yuri Milner ; Sergey Brin; Anne Wojcicki; New Enterprise Associates, Inc. ; Google Ventures; MPM Capital | 50.00 |
| 4 | 12/17/12 | Naurex, Inc. (US) | Baxter Ventures ; Savitr Capital LLC; Adams Street Partners, LLC; Latterell Venture Partners; Genesys Capital; PathoCapital; Druid BioVentures ; Northwestern University; H Lundbeck A/S; Takeda Ventures, Inc; Shire plc; Undisclosed Investors | 38.00 |
| 5 | 12/17/12 | Allakos, Inc (US) | Novo Ventures; Alta Partners; RiverVest Venture Partners; Roche Venture Fund | 32.00 |
| 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