M&A activity in the pharmaceutical sector was focused on strengthening product portfolios as companies look for significant revenue synergy opportunities.
In line with the above trend, Ireland-based Shire agreed to acquire ViroPharma, a US-based rare disease biopharmaceutical company, for approximately $4.2 billion. This transaction is consistent with Shire’s objective of strengthening its rare disease portfolio and also enhances its short and long-term revenue growth profile. This acquisition is expected to create a $2 billion rare disease revenue base, while delivering strong growth prospects.
With this acquisition, Shire will gain access to CINRYZE, a leading brand for the prophylactic treatment of Hereditary Angioedema (HAE). CINRYZE, designated as an orphan drug and approved in October 2008, has grown rapidly since its launch in 2009 to generate revenues of $321 million in the US in 2012. CINRYZE has US orphan drug exclusivity which expires in 2015 and US biologics data exclusivity until 2020.
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M&A (including private equity) trend analysis
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| Source: Medtrack |
In another key deal, Salix Pharmaceuticals agreed to acquire Santarus, a specialty biopharmaceutical company, for approximately $2.6 billion. The transaction solidifies Salix’s lead position as the largest specialty pharma company in the Gastrointestinal (GI) market with access to a strong GI portfolio comprised of UCERIS, ZEGERID, GLUMETZA, CYCLOSET and FENOGLIDE.
This acquisition provides Salix with an experienced specialty sales force to significantly expand its gastrointestinal product sales.
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Top M&A deals (Nov 2013)
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||||
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Rank
|
Date
|
Target
|
Acquirer
|
Deal value ($m)
|
| 1 | Nov 11, 2013 | ViroPharma Incorporated (US) | Shire plc (IE) |
4,200.00
|
| 2 | Nov 7, 2013 | Santarus, Inc. (US) | Salix Pharmaceuticals, Ltd. (US) |
2,600.00
|
| 3 | Nov 19, 2013 | Patheon Inc. (US) | JLL Partners; Royal DSM N.V. |
1,950.00
|
| 4 | Nov 5, 2013 | Paladin Labs, Inc. (CA) | Endo Health Solutions Inc. US) |
1,600.00
|
| 5 | Nov 19, 2013 | EOS S.p.A. (IT) | Clovis Oncology, Inc. (US) |
420.28
|
| 6 | Nov 27, 2013 | Gland Pharma Limited (IN) | Kohlberg Kravis Roberts & Co. L.P. (US) |
200.00
|
| 7 | Nov 26, 2013 | Jennerex Biotherapeutics, Inc. (US) | SillaJen, Inc. (KR) |
150.00
|
| 8 | Nov 20, 2013 | Callidus Biopharma, Inc. (US) | Amicus Therapeutics, Inc. (US) |
130.00
|
| 9 | Nov 18, 2013 | GANYMED Pharmaceuticals AG (DE) | ATS Beteiligungsverwaltung GmbH; MIG Verwaltungs AG; FCPB Gany GmbH |
60.74
|
| 10 | Nov 7, 2013 | Shanghai Fudan-Zhangjiang Bio-Pharmaceutical Co., Ltd. (CN) | China New Enterprise Investment Co., Ltd. (CN) |
25.40
|
| Source: Medtrack | ||||
M&A activity in the pharma sector decreased in volume terms and increased in value terms, when compared to the average of the previous six months (May – October 2013). According to Datamonitor’s Medtrack database, the pharma sector recorded 26 M&A transactions in November 2013, against the previous six months’ average of 31.6 transactions. In value terms, the sector recorded deals worth $11.4 billion, against the previous six months’ average of $9 billion.
The Indian pharma sector witnessed two deals during November 2013, while the previous six months witnessed no activity at all. Among them, US-based investment firm Kohlberg Kravis Roberts & Co’s agreed acquisition of a minority stake in Gland Pharma, an Indian generic injectable pharmaceutical products company, for approximately $200 million, is notable.
|
Venture financing trend analysis
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| Source: Medtrack |
Venture funding
Companies in the pharma sector raised $262.3 million during November 2013, against the previous six months’ average of $241.9 million. In terms of volume, the sector recorded 17 venture funded deals, when compared to the previous six months’ average of 21.8 transactions.
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Top venture financing deals (Nov 2013)
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||||
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Rank
|
Date
|
Target
|
Investors
|
Deal value ($m)
|
| 1 | Nov 25, 2013 | Editas Medicine (US) | Flagship Ventures; Polaris Venture Partners; Third Rock Ventures, LLC; Partners Innovation Fund |
43.00
|
| 2 | Nov 15, 2013 | Catabasis Pharmaceuticals, Inc. (US) | Lightstone Ventures; SV Life Sciences; Clarus Ventures, LLC; MedImmune Ventures, Inc.; Advanced Technology Ventures; (Other) Undisclosed Investors |
32.40
|
| 3 | Nov 18, 2013 | MISSION Therapeutics, Ltd. (GB) | Pfizer Venture Investments; Sofinnova Partners; Imperial Innovations; SR One; Roche Venture Fund |
32.24
|
| 4 | Nov 18, 2013 | Aileron Therapeutics, Inc. (US) | Excel Venture Management; Apple Tree Partners; Roche Venture Fund; Novartis Venture Funds; Lilly Ventures; SR One |
30.00
|
| 5 | Nov 20, 2013 | Pulmocide, Ltd. (GB) | Johnson & Johnson Development Corporation; SV Life Sciences; Fidelity Biosciences; Imperial Innovations Group PLC |
27.38
|
| Source: Medtrack | ||||
Notes
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