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Dealmakers weekly review – July 31 2012 – Merck & Co, Chimerix, Hill-Rom, Aspen Surgical Partners, Navidea, Hyperion, Bluebird Bio

Posted on 31 July 2012

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A busy week for life science financings in an otherwise quiet week for dealmakers.

The review

The past week saw a busy week in terms of partnering announcements even though slightly down on the previous week.

The lead partnering deal was that between Merck & Co and Chimerix for the exclusive rights to CMX157, a novel lipid acyclic nucleoside phosphonate. The deal was valued at $168.5 million.

M&A was relatively quiet after the rush of deals in recent weeks, perhaps due to a holiday season dip. The lead deal was the $400 million acquisition of Aspen Surgical Partners by Hill-Rom.

On the financing front, there were 19 announcements amking it a busy week.

The lead deal was the series D financing for Bluebird BIO for the sum of $60 million, ensuring the company has funds to advance clinical programs in severe genetic disorders, including childhood cerebral adrenoleukodystrophy, beta-thalassemia and sickle cell disease.

Further significant fincancings include: $50 million in debt financing for Navidea Biopharmaceuticals, $50 million IPO for Hyperion Therapeutics, and $49 million private placement for Histogenics.

The numbers

Partnering deals: 60 (down on last week: 65)

M&A deals: 11 (down on last week: 20)

Financing deals: 19 (up on last week: 17)

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

Deals of note

1. Licensing agreement for CMX157

Headline value: $168.5 million

Merck & Co, Chimerix | Bigpharma, Specialty pharma | Infectives > HIV

Chimerix announced the execution of a license agreement granting Merck, known as MSD outside the United States and Canada, exclusive worldwide rights to CMX157, Chimerix's novel lipid acyclic nucleoside phosphonate currently being evaluated to treat HIV infection.   Under the terms of the agreement, Merck receives an exclusive worldwide license and will be responsible for development and commercialization of CMX157, an investigational oral nucleoside reverse transcriptase inhibitor.   Chimerix will receive a $17.5 million upfront payment and will be eligible to receive up to $151 million in milestones, as well as royalties on future sales.

2. Grant award for $132 million for organ-on-a-chip system

Headline value: $132 million

Defense Advanced Research Projects Agency, National Institutes of Health | Government | Diagnostics

National Institutes of Health and the Defense Advanced Research Projects Agency are together pledging up to up to $132 million for creating "organ-on-a-chip" systems, with the eventual goal of simulating the entire human body.

3. Acquisition agreement for Aspen Surgical Products

Headline value: $400 million

Hill-Rom, Aspen Surgical Partners | Medical Device

Hill-Rom Holdings has completed the $400 million purchase of privately held Aspen Surgical Products.

Aspen Surgical provides a portfolio of well-established surgical consumable and specialty medical products focused on improving the safety of patients and health care professionals.   The transaction was funded with a combination of cash and bank debt.

4. Series D financing for $60 million

Headline value: $60 million

Bluebird Bio, RA Capital Management, Ramius, ARCH Venture Partners, Third Rock Ventures, TVM Capital, Forbion Capital Partners, Deerfield Partners | Biotech | Hematology> Thalassemia, Genetic disorder > Sickle cell disease

bluebird bio announced the successful completion of a $60 million Series D financing.

In this round, new investors Deerfield Partners, RA Capital, Ramius Capital Group, and two undisclosed blue chip public investment funds joined existing investors ARCH Venture Partners, Third Rock Ventures, TVM Capital, and Forbion Capital Partners.   Proceeds will be used to advance the company's clinical programs in severe genetic disorders, including childhood cerebral adrenoleukodystrophy, beta-thalassemia and sickle cell disease.

5. Debt financing for $50 million

Headline value: $50 million

Navidea Biopharmaceuticals, Platinum Montaur Life Sciences | Pharmaceutical, Biotech | Oncology > Colorectal cancer

Navidea Biopharmaceuticals announced that Platinum-Montaur Life Sciences, will provide Navidea a credit facility of up to $50 million.   This transaction provides the Company with significant, yet flexible, financial resources to fund its development and growth plans.

Under the terms of the transaction, Montaur has committed to extend up to $15 million in debt, which is available immediately, to the Company at a prime-based interest rate currently at approximately 10 percent per annum.

Montaur has committed an additional $20 million upon approval of Lymphoseek on consistent terms, with yet an additional $15 million potentially available on terms to be negotiated.

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.

Top M&A deals at the half way point of 2012

Terumo Plans Merger With Olympus To Scupper Sony Bid

Human Genome rejected Amgen’s $7 billion bid in 2010

Billionaire Gupta May Acquire U.S. Drug Brands

Hyperion Therapeutics prices IPO below proposed range

AstraZeneca sales hit hard by generic competition but sticks to deal making strategy

Sanofi Looks Like Genzyme as CEO Embraces Biotech

New Venture Fund Raises $2.6 Billion

Surge in biotech deals to unlock big investor profits

Steve Poile

 

Related links:

Scorecard deal metrics for Jan-June 2012 now available

Scorecard bigpharma partnering metrics Jan-June 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)

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