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Mergers and Acquisitions in Pharma - 2016

Contributor: Pharma IQ
Posted: 03/31/2017
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In 2015, the pharma and biotech industry was diagnosed with merger fever. Industry analysts revealed that the first half of 2015 soared past the previous year’s grand total, with $221 billion of pharma M&As occurring just in the first two quarters of 2015.[13] Cheap interest rates fuelled the M&A buzz, with acquisitions providing pharma firms with the growth to match investor expectations.

2016, however, was a much quieter year seeing the potentially record breaking Pfizer-Allergan merger scrapped due to legislation changes and a lower amount of M&A deals take place across the industry.

Despite the volume of deals dipping, pharma companies paid a lot more for acquisitions in 2016. The FT reports that the value of deals increased by almost double in comparison to 2015.

Many pharma firms have been strategically renovating their portfolios through buying and selling. M&As provide pharma firms with direct access to the blockbusters of tomorrow - some individuals maintain that it is cheaper to acquire the next blockbuster rather than to discover and nurture it from scratch in house.

Here are some of the key M&A transactions and partnerships that took place in 2016.

Shire completed a merger with Baxalta Incorporated which was reportedly valued at $32 billion, with a mission to lead the market in the cure of rare diseases.

GSK’s ViiV Healthcare acquired the HIV R&D portfolio of Bristol Myers US, for an initial upfront payment of $317 million followed by development and first commercial sale milestones of up to $518 million and tiered royalties on sales.

Pfizer, Inc., United States made a number of acquisitions in 2016 including Anacor Pharmaceuticals and Bamboo Therapeutics. The former’s compound crisaborole targeting eczema has been labelled as a potential future blockbuster. 3

Teva Pharmaceutical Industries Ltd acquired Allergan Plc’s global generic business unit (Actavis Generics). Back in August 2016, the acquisition left Teva with approximately 338 product registrations pending FDA approval.

AbbVie acquired stemcentrx, inc., United States and with it came Rova-T -a late stage oncology antibody therapeutic  which won the most promising clinical candidate award in 2016.

Merck pays US$20 million for Harvard Cancer Drug   The pharma firm has paid an upfront fee of US$20 million for an oncology drug produced by a team of scientists at Harvard. This is said to have been the highest upfront cash payment Harvard has ever received from a pharma licensing deal.

Bristol-Myers Squibb acquires Padlock Therapeutics, Inc : Bristol Myers Squibb signed an agreement to acquire the outstanding stock of Padlock – a biotechnology company focused on the treatment of destructive autoimmune diseases. The deal is set to further strengthen the firm’s immunoscience pipeline.

Mylan finalizes Meda Acquisition: Mylan has completed the settlement of its acquisition of pharma firm Meda Aktiebolag (publ).

Teva and Nanolek agree on sterile injection production: Teva, which has labeled itself as the largest Israeli investor in the Russian economy has agreed with Nanolek to move the production of a set of sterile injectable medicines to Russia. The long term agreement will be commenced with the move of Glatiramer acetate. 

Biomerger takes place: Mosaic Biomedicals SL announces merger with Northern Biologics Inc focusing on the rapid d development of MSC-1, a humanized antibody is expected to start using in clinical trials In various types of tumor in 2017, with multiple sites planned throughout Europe and North America.

 Resources
1.       https://www.ft.com/content/acb4fa54-c916-11e6-9043-7e34c07b46ef
2.        http://www.pharma-iq.com/business-development/articles/q4-pharma-biotech-news-the-highlights
3.       http://www.biotechlogic.com/top-pharmaceutical-ma-deals-of-2016/
4.        http://www.pharma-iq.com/regulatory-resources/articles/q1-the-highlights
5.        https://www.shire.com/en/newsroom/2016/june/baxalta-now-part-of-shire
6.       http://us.gsk.com/en-us/media/press-releases/2016/gsk-s-global-hiv-business-viiv-healthcare-completes-transactions-to-acquire-bristol-myers-squibb-s-randd-hiv-assets/
7.       http://www.pfizer.com/news/press-release/press-release-detail/pfizer_aims_to_become_industry_leader_in_gene_therapy_with_aquisition_of_bamboo_therapeutics_inc
8.       http://www.pfizer.com/news/press-release/press-release-detail/pfizer_completes_acquisition_of_anacor
9.       http://www.tevapharm.com/news/teva_completes_acquisition_of_actavis_generics_08_16.aspx
10.   https://news.abbvie.com/news/abbvie-to-expand-oncology-presence-through-acquisition-stemcentrx-and-its-novel-late-stage-rova-t-compound-for-small-cell-lung-cancer.htm
11.   http://newsroom.mylan.com/2016-08-05-Mylan-Completes-Acquisition-of-Meda
12.   https://news.bms.com/press-release/partnering-news/bristol-myers-squibb-acquire-padlock-therapeutics-inc&t=635950837932174168
13.   https://www.sunpharma.com/sites/default/files/pressreleases/Press%20Release%20-%20Sun%20AstraZeneca%20India%20Collaboration-.pdf
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