M&A activity in the pharmaceutical sector was focused on strengthening respiratory product pipeline as lung diseases like chronic obstructive pulmonary disease (COPD) continues to increase worldwide and is predicted to be the third leading cause of death by 2020. According to World Health Organization (WHO), total deaths from COPD are projected to increase by more than 30 per cent in the next 10 years.
In line with the above trend, UK-based AstraZeneca acquired Pearl Therapeutics, a US-based developer of inhaled small-molecule therapeutics for respiratory disease, for approximately $1.1 billion. This acquisition will enable AstraZeneca to offer further distinctive treatment options across the full spectrum of COPD and asthma to patients and physicians.
| Figure: M&A (including private equity) trend analysis |
| Source: Medtrack |
This transaction will give AstraZeneca access to PT003, a potential new treatment for COPD, currently in late-stage development, and inhaler and formulation technology that provides a platform for future combination products.
In another key deal, Israel-based Teva Pharmaceutical Industries agreed to acquire MicroDose Therapeutx, a US-based pharmaceutical and drug delivery company, for approximately $165 million. With this transaction, Teva is taking a significant step towards expanding its respiratory pipeline.
With this acquisition, Teva will gain access to MicroDose’s proprietary technology, including its multi-dose dry powder nebulizer device, which requires no preparation and can be administered in less than 30 seconds. MicroDose’s current pipeline is anchored by MDT-637 for Respiratory Syncytial Virus (RSV) infection, which prevents viral replication and delivered via MicroDose’s technology.
| Top M&A deals (Jun 2013) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
|
1
|
06/27/13 | Pearl Therapeutics, Inc. (US) | AstraZeneca PLC (GB) |
1150.00
|
|
2
|
06/17/13 | Aragon Pharmaceuticals, Inc. (US) | Johnson & Johnson (US) |
1000.00
|
|
3
|
06/17/13 | MicroDose Therapeutx, Inc. (US) | Teva Pharmaceutical Industries, Ltd. (IL) |
165.00
|
|
4
|
06/17/13 | Fera Pharmaceuticals, LLC – product portfolio (US) | Perrigo Company (US) |
129.00
|
|
5
|
06/05/13 | Plastiape S.p.A. (IT) | PM & Partners S.P.A (IT) |
92.81
|
|
6
|
06/17/13 | Boda Pharmaceutical Co., Ltd. (CN) | Zhuhai Rongding Equity Investment Partnership L.P. (CN) |
65.00
|
|
7
|
06/04/13 | Isconova AB (SE) | Novavax, Inc. (US) |
29.60
|
|
8
|
06/25/13 | Cross Pharma AB (SE) | Medivir AB (SE) |
18.58
|
|
9
|
06/18/13 | Thallion Pharmaceuticals, Inc. (CA) | BELLUS Health Inc. (CA) |
13.76
|
|
10
|
06/06/13 | Novartis AG – Syntometrine (CH) | Alliance Pharmaceuticals Limited (GB) |
11.80
|
| Source: Medtrack | ||||
M&A activity in the pharma sector decreased in both volume and value terms, when compared to the average of previous six months (Dec 2012 – May 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 31 M&A transactions in Jun 2013, against the previous six months’ average of 32.8 transactions. In value terms, the sector recorded deals worth $2.7 billion against the previous six months’ average of $5 billion.
The Indian pharma sector witnessed no deals during Jun 2013, against the average of one deal over the previous six months.
| Figure: Venture financing trend analysis |
| Source: Medtrack |
Venture Funding
Companies in the pharma sector raised $218.9 million during Jun 2013, against the previous six months’ average of $215.1 million. In terms of volume, the sector recorded 19 venture funded deals, when compared to the previous six months’ average of 19.3 transactions.
|
Top venture financing deals (Jun 2013)
|
||||
|
Rank
|
Date
|
Target
|
Investors
|
Deal value ($m)
|
|
1
|
06/04/13
|
Akebia Therapeutics, Inc. (US) | Satter Investment Management, LLC; Novo A/S; Novartis Venture Funds; Kearny Venture Partners; Venture Investors LLC; Athenian Venture Partners; Triathlon Medical Ventures; AgeChem Venture Fund, L.P; Sigvion Capital Fund |
41.00
|
|
2
|
06/11/13
|
Dermira, Inc. (US) | Maruho Co., Ltd.; Bay City Capital LLC; New Enterprise Associates, Inc.; Canaan Partners |
35.00
|
|
3
|
06/27/13
|
Heptares Therapeutics, Ltd. (GB) | The Stanley Family Foundation; Clarus Ventures, LLC; Takeda Ventures, Inc |
21.00
|
|
4
|
06/21/13
|
3-V Biosciences, Inc. (US) | Kleiner Perkins Caufield & Byers; New Enterprise Associates, Inc. |
20.00
|
|
5
|
06/26/13
|
Complix NV (BE) | Edmond de Rothschild Investment Partners; Gimv NV; Biotech Fund Flanders; LRM; Omnes Capital; Vesalius BioCapital Partners S.a.r.l ; Gemma Frisius Fund K.U.Leuven; TrustCapital NV; PMV-Vinnof; Baekeland Fund I NV; Centre de Recherche Public de la Sante; Undisclosed Investors |
15.74
|
| 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