M&A activity in the pharma sector in October 2012 was focused on increasing product offerings, as the companies were looking to expand their existing businesses.
In line with the above trend, Pfizer agreed to acquire NextWave Pharmaceuticals, a US-based speciality pharmaceutical company, for approximately $680 million. This acquisition would enable Pfizer to focus on the expansion of established US brand’s business. With this transaction, Pfizer will gain access to NextWave’s Quillivant XR, the first once-daily liquid medication approved in the US for the treatment of Attention Deficit Hyperactivity Disorder (ADHD).
| M&A (including private equity) trend analysis |
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| Source: MedTRACK |
In another key deal, Japan-based Takeda Pharmaceutical agreed to acquire LigoCyte Pharmaceuticals, a US-based clinical-stage biopharma company for $60 million. This transaction would help Takeda expand its vaccine business. With this acquisition, Takeda will gain access to LigoCyte’s norovirus vaccine, along with a virus-like particle technology, besides, vaccines against respiratory syncytial virus, influenza and rotavirus, for which preclinical development has already been initiated.
| Top M&A deals (Oct 2012) | ||||
| Rank | Date | Target | Acquirer | Deal value ($m) |
| 1 | Oct 30, 2012 | Schiff Nutrition International Inc (US) | Bayer HealthCare, LLC (US) | 1,200.00 |
| 2 | Oct 22, 2012 | NextWave Pharmaceuticals, Inc. (US) | Pfizer, Inc. (US) | 680.00 |
| 3 | Oct 15, 2012 | Amdipharm plc (GB) | Cinven Limited (GB) | 590.01 |
| 4 | Oct 29, 2012 | Banner Pharmacaps, Inc. (US) | Patheon, Inc. (CA) | 255.00 |
| 5 | Oct 30, 2012 | Ceva Sante Animale (FR) | AXA Private Equity (FR) | 129.14 |
| 6 | Oct 4, 2012 | Metrics, Inc. (US) | Hospira Australia Pty., Ltd. (AU) | 120.00 |
| 7 | Oct 18, 2012 | Presidio Pharmaceuticals, Inc. (US) | BioCryst Pharmaceuticals, Inc. (US) | 101.00 |
| 8 | Oct 4, 2012 | LigoCyte Pharmaceuticals, Inc. (US) | Takeda Pharmaceutical Company Limited (JP) | 60.00 |
| 9 | Oct 8, 2012 | Optimer Biotechnology, Inc. (TW) | Optimer Biotechnology, Inc. – Shareholders | 60.00 |
| 10 | Oct 22, 2012 | moksha8 Pharmaceuticals, Inc. (BR) | Undisclosed Acquirer | 47.00 |
| 11 | Oct 8, 2012 | Fibrocell Science, Inc. (US) | NRM VII Holdings I, LLC ; Undisclosed Investors | 45.00 |
| Source: MedTRACK | ||||
The M&A activity in the pharma sector decreased both in volume and value terms, when compared to the average of previous six months (Apr 2012–Sep 2012). According to Datamonitor’s Medtrack database, the pharma sector recorded 36 M&A transactions in October 2012, against the previous six months’ average of 37 transactions. In value terms, the sector recorded deals worth $3.4 billion against the previous six months’ average of $10.3 billion.
The Indian pharma sector witnessed only one deal during October 2012, against the average of 0.8 deals over the previous six months in which Mauritius-based Citigroup Global Markets acquired 4.5 per cent stake in PI Industries, a manufacturer of chemicals.