Sanofi-Aventis strengthens presence in oncology market with acquisition of TargeGen
Date of publication: July 1, 2010
Big price for small molecules?
The price for increasing your market presence for the treatment of leukaemia, lymphoma and blood disorders through the acquisition of a privately held US biopharmaceutical company has been determined by Sanofi-Aventis to be $560 million. See this illustrated on our M&A 2010 Scorecard.
This is what Sanofi could potentially have to pay to acquire TargeGen. This deal includes a $75 million upfront payment and milestones totalling a further $485 million.
For this however, Sanofi-aventis will gain access to TargeGen’s small molecule kinase inhibitor and lead product TG101348. TG101348 has currently completed multicenter I and II trials in patients with myelofibrosis with additional studies due to commence in the second half of 2010.
Sanofi-aventis’ strategy is to maximise the potential of TG101348 by developing it further and commercializing it across multiple clinical indications.
Time will tell if this deal proves to be a good acquisition for Sanofi-aventis.
In the meantime, the acquisition does provide a strong statement of intent by Sanofi-aventis and their commitment to providing patients and physicians with oncology medicines that address unmet clinical needs through bold acquisitions.
Tim Martin
July 2010