Insight journal - Deals and alliances

Dealmakers weekly review – June 19 2012 – Stiefel, Basilea, Eli Lilly, Navast, Upsher-Smith, Proximagen, Asterand, Stemgent

Posted on 19 June 2012

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Partnering continues to be buoyant in the run up to BIO2012 in Boston.

The review

There were fifty-eight partnering deals in the past week. The lead deal by value was asset purchase and licensing agreement between Stiefel and Basilea for Toctino, a treatment of eczema.

Other deals of the week were for relatively low headline values.

Merck, the US and Norwegian governments and the American College of Obstretricians and Gynecologists agreed a pact to fund research into reducing maternal mortality rates. The parties committed $200 million in funds for the research over the next few months.

M&A remained fairly buoyant with thirteen deals announced. Upsher-Smith entered the M&A fray with the purchase of Proximagen for $553 million.

In addition, there were a number of private equity buyouts including BSN Medical being acquired by Montagu Private Equity for $2.25 billion, and Integramed America being acquired by Sagard Capital Partners for $169.5 million.

On the financing front, there were several deals of note in the past week. ConforMIS successfully riased $73 million in its series E. Global Blood Therapeutics raised $40.7 million in a series A at launch of the company, whilst Invuity raised $33 million in a series C financing.

The numbers

Partnering deals: 58 (down on last week: 70)

M&A deals: 13 (up on last week: 12)

Financing deals: 11 (down on last week: 21)

Request a trial to Current Agreements to view all last weeks deals.

Deals of note

1. Asset purchase and licensing agreement for Toctino

Headline value: $304.75 million

Stiefel, Basilea

Pharmaceutical - Dermatology > Eczema

Stiefel has entered into a worldwide agreement to acquire Toctino from Basilea Pharmaceutica.   Toctino is a once-daily oral retinoid and the only prescription medicine specifically approved for the treatment of severe chronic hand eczema unresponsive to potent topical steroids in adults.

It is commercially available in 14 countries, approved in an additional 15 countries, and is in a Phase 3 trial in the US.

Under the terms of the agreement, Stiefel will acquire all Toctino patent rights, trademarks and product registrations owned by Basilea and will license certain clinical information and product know-how from Basilea.   Stiefel will be responsible for the product's further development, manufacture and commercialisation worldwide.

2. Collaboration agreement for generic medicines

Headline value: $20 million

Eli Lilly, Novast

Bigpharma, generic

Eli Lilly announced an increase of its network of manufacturing capabilities in this key emerging market country through an expanded collaboration with Novast Laboratories.

Novast, a generic and specialty pharmaceutical company based in Nantong, China, has established high-quality systems and manufacturing facilities for the global and domestic Chinese markets.   Lilly expects its expanded collaboration with Novast to greatly enhance its efforts to build a portfolio of Lilly branded generic medicines in China.   The collaboration may also ultimately result in Novast providing local and regional manufacturing capabilities for Lilly's own pipeline of potential new medicines in development.   As part of the agreement, Lilly will increase its equity position in Novast by $20 million.

3. Asset purchase agreement for human tissue business

Headline value: $9 million

Asterand, Stemgent

Biotech, research tools

Company has entered into a conditional agreement to dispose of the Human Tissue Business to two wholly owned subsidiaries of Stemgent for an aggregate cash consideration of USD9,000,000, subject to certain adjustments.

This Disposal is conditional upon, amongst other matters, the approval of Shareholders.   Disposal of the Human Tissue Business for an aggregate cash consideration of USD9,000,000, subject to certain adjustments (including a working capital adjustment).

4. Acquisition agreement for Proximagen

Headline value: $553 million

Upsher-Smith, Proximagen

Pharmaceutical, biotech

USL Pharma International U.K. Ltd., a wholly-owned subsidiary of Upsher-Smith Laboratories has agreed a recommended offer for European biotechnology company Proximagen Group PLC which values the company at 223.0 million British pounds ($346.7 million), excluding contingent value rights, or CVRs.

Accepting Proximagen shareholders will receive 320 pence in cash; and up to a further 192 pence in either cash or Loan Notes by way of a CVR for each share held.

Acquisition, including the CVRs, values Proximagen's fully diluted share capital at up to GBP356.8 million ($554.7 million).

5. Series E financing for $73 million

Headline value: $73 million

ConfirMIS - Series E

ConforMIS successfully raised $73 million through the sale of stock and convertible securities.   The fundraising, noted in a new regulatory filing, is a bit of a coup, in fact, surpassing an initially-announced plan to pull in $68 million through the action.   Including the new bundle of cash, the Burlington, MA company has raised a total of $162 million just since January, representing a significant amount of money raised so far in 2012.

Request a trial to Current Agreements to view all last weeks deals.

Dealtalk

In addition to deal announced there is always gossip and speculation of potential deals – here is just some of the Dealtalk from the last seven days.

Aurora Diagnostics cancels IPO plans

Johnson & Johnson gets FTC approval to buy Synthes, must sell wrist fractures unit to Biomet

Nick Woolf and Phylogica hits milestone with Pfizer

GSK rumoured to be buying $5bn BioMarin

Pharma chief eyes huge windfall

China’s compulsory licensing causes a stir

Rivals see no need to match Roche’s big gene bet

Steve Poile

 

Related links:

Scorecard deal metrics for Jan-May 2012 now available

Scorecard bigpharma partnering metrics Jan-May 2012 now available

Partnering Scorecard 2012

M&A Scorecard 2012

Financing Scorecard 2012

View all deals of the past week at Current Agreements (subscription required)

Request a trial to Current Agreements now.

Subscribe to Current Agreements for access to every deal announced in the life sciences since 2000.

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