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Pharma M&A focuses on increasing product pipelines in Oct 2012

Decreased both in volume and value terms

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
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.

Venture financing trend analysis
Source: MedTRACK

Venture funding

Companies in the pharma sector raised $252 million during October 2012, against the previous six months’ average of $282.8 million. In terms of volume, the sector recorded 23 venture funded deals, compared to the previous six months’ average of 22.1 transactions.

Top venture financing deals (Oct 2012)
Rank Date Target Investors Deal value ($m)
1 Oct 23, 2012 ZS Pharma, Inc. (US) Alta Partners; RiverVest Venture Partners ; Salem Partners; Devon Park Bioventures; 3x5 Special Opportunity Partners 46.00
2 Oct 25, 2012 Thrasos Therapeutics, Inc. (CA) SR One; SW Co; Advanced Technology Ventures; Fonds de solidarite FTQ; Lumira Capital Corp; MP Healthcare Venture Management, Inc.; Pappas Ventures 35.00
3 Oct 24, 2012 Mirna Therapeutics, Inc. (US) Sofinnova Ventures, Inc.; New Enterprise Associates, Inc.; Pfizer Venture Investments; Osage University Partners; Correlation Ventures; Undisclosed Investors 34.50
4 Oct 10, 2012 Genocea Biosciences (US) Bill & Melinda Gates Foundation; CVF LLC; Polaris Venture Partners; Lux Capital Management; SR One; Johnson & Johnson Development Corporation; Skyline Ventures; Cycad Group, LLC; Auriga Partners; MP Healthcare Venture Management, Inc.; Morningside Ventures 30.00
5 Oct 8, 2012 Affimed Therapeutics AG (DE) Aeris Capital AG; BioMedInvest AG; Life Sciences Partners; Novo Nordisk A/S; OrbiMed Advisors, LLC 0.01
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

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