Insight journal - Deals and alliances

Current Agreements Deal Analysis Update: June 2012

Posted on 07 June 2012

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This month we are providing you with an overview of deal analysis in the life sciences, covering partnering and M&A in May 2012.

Deal of the month

Asset purchase agreement for AP214 for acute kidney injury

May 3, 2012 - Abbott, Action Pharma

Abbott Laboratories will spend $110 million to buy a potential kidney treatment from the privately held Danish company Action Pharma more

Breaking news...

Collaboration agreement for bispecific antibodies for DuBody

June 4, 2012 - Novartis, Genmab

Novartis is paying Genmab $2 million up front as part of a collaboration to develop bispecific antibodies based on the latter’s DuoBody technology against two disease target combinations selected by Novartis more

Licensing agreement for Abstral

June 4, 2012 - Orexo, ProStrakan

Orexo jointly announce that the companies have reconfigured the commercial rights to the product, Abstral, in various territories worldwide more

For more breaking deals as they are announced, visit: http://www.currentagreements.com

Month In Review

Welcome to the June 2012 edition of Current Agreements Deal Analysis Update.

This month we are providing you with an overview of deal making activity in the life sciences, covering partnering and M&A in May 2012.

Partnering activity continued at a good pace, although high headline value deals were few and far between. A total of 301 partnering deals were announced during the month, with the top deal by value being the royalty financing agreement for Fumaderm assets, etered into by Royalty Pharma and Fumapharm. The deal had a headline value of USD761 million. Further details can be viewed here.

M&A also lower than normal activity with 33 deals announced, with the leading deal being the merger between DaVita and Healthcare Partners to form DaVita Healthcare Partners, in a deal valued at USD4.42 billion. Full details here.

Our sister company, Current Partnering has just published several new reports:

Our Current Partnering website showcases the leading partnering, M&A and financing deals by value.

To see the latest 2012 leading deals, plus view the full set of Scorecards for 2011: Top partnering deals | Top M&A deals - check them out.

We welcome your comments and feedback on this newsletter. We also welcome contact from any company that has a deal not already announced by press release, allowing us to add non-publicized deals to the database.

Regards

Steve Poile

Month In Review

The following figure shows deals during May 2012 by industry sector.

The following figure shows deals during May 2012 by stage of development.

The following figure shows deals during May 2012 by therapy area.

The following figure shows deals during May 2012 by deal type.

The top ten

The following are the top 10 partnering deals and alliances by value, as announced in May 2012.

1. Contract service agreement for CIO-SP3 - NIH, ATEK Medical - £20 billion

2. Contract service agreement for information technology - NIH, VSE - $20 billion

3. Settlement agreement for Depakote - Abbott, US Government - $1.6 billion

4. Royalty financing agreement for Fumaderm assets - Fumapharm, Royalty Pharma - $761 million

5. Settlement agreement for Celebrex - Pfizer, Brigham Young University - $450 million

6. Contract service agreement for healthcare services - VSE, Akimeka, Dept of Defense - $300 million

7. Collaboration agreement for the development of new antibiotics - AstraZeneca, Basilea Pharmaceutica, European Commission, GlaxoSmithKline, Innovative Medicines Initiative, Johnson & Johnson, Sanofi - $282 million

8. Development agreement for AtuRNAi for open-angle glaucoma - Pfizer, Quark - $165 million

9. Asset purchase agreement for AP214 for acute kidney injury - Abbott, Action Pharma - $110 million

10. Development and licensing agreement for heparosan-based drug delivery technology - Novo Nordisk, Caisson Biotech $100 million

Full details of each deal available at Current Agreements* *Subscription required

Bigpharma Partnering

May saw 33 partnering deals announced where bigpharma were at least one of the parties to the deal. This is down from the402 deals recorded in the previous month.

GlaxoSmithKline was particularly active,  leading partnering activity in May:

GlaxoSmithKline

  • Centre for Drug Research and Development - Collaboration agreement for commercialization of Canadian health research
  • Hong Kong Cancer Fund - Collaboration agreement for pilot scheme to subsidize expensive drugs
  • AstraZeneca, Basilea Pharmaceutica, European Commission, Johnson & Johnson, Sanofi, Innovative Medicinces Initiative - Collaboration agreement for the development of new antibiotics
  • Auxilium - Co-promotion agreement for Testim
  • Yale University - Collaborative R&D agreement for new drug class that degrade disease causing proteins

Further details of each deal are available at Current Agreements.

Deal Update Articles

Recent deals and alliances in life sciences - here's our take:

Hologic buys Gen-Probe for $3.7 billion

In a joint statement, Hologic announced it is to acquire Gen-Probe, in a deal valued at $37 billion. The deal allows Hologic to expand into emerging markets in China and Europe, where is currently has limited presence. The all-cash transaction is expected to be funded through available cash and additional financing of term loans and high yield securities.

Jazz makes another acquisition, this time Eusa

A mere few months after acquiring Azur Pharma, Jazz is at it again, this time acquiring Eusa Pharma for $700 million. Jazz Pharmaceuticals has agreed to acquire EUSA Pharma, a privately-held, specialty pharmaceutical company with headquarters in the United States and United Kingdom, for $650 million in cash and a potential $50 million milestone payable in cash based upon its lead product, Erwinaze (asparaginase Erwinia chrysanthemi), achieving a specified U.S. net sales target in 2013.

AstraZeneca acquires Ardea for $1.26 billion; gains Lesinurad

In a deal valued at $1.26 billion, AstraZeneca has snapped up Ardea Biosciences, gaining access to Ardea’s lead drug for the treatment of gout, Lesinurad, in the process. Ardea’s clinically most advanced product candidate, lesinurad (formerly known as RDEA594), is currently in Phase III development as a potential treatment for the chronic management of hyperuricaemia in patients with gout. Under the terms of the agreement, AstraZeneca will acquire Ardea for $32 per share which represents a total cash value of approximately $1.26 billion.

Nestle gains nutrition business from Pfizer in $11.85 billion deal

The world’s biggest food company and the world’s biggest drug company have agreed a $11.85 billion deal where Pfizer‘s infant nutrition business has moved over the Nestle, edging out Danone in the process. In an auction style deal, Nestle’s bid of $11.85 billion beat a $11 billion offer from Danone.

Merck snags deal for oncology candidate vintafolide

Merck has entered into a global development and marketing agreement to commercialize Endocyte’s novel therapeutic vintafolide (EC145). Merck is paying Endocyte $120 million upfront and milestone payments of up to $880 million based on successful achievement of development, regulatory and commercialization goals in a total of six cancer indications.

Japan pharma continues acquisition spree – this time Takeda acquires URL Pharma

The trend of Japanese pharma making overseas acquisitions continues with Takeda‘s purchase of URL Pharma for $800 million plus potential follow up payments. The deal gives Takeda access to URL’s Colcrys, a treatment for gout. It appears that this is the key asset of interest to Takeda.

 

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