IN VIVO’s Deals Of The Month: May 2016
Executive Summary
IN VIVO’s editors pick May's most significant deals, including a hefty Series A for Homology, Cigna's latest pay-for-performance deals, and a merger of giants. (Article free with registration.)
Top Alliance: Cigna Pays If PCSK9s Perform
Cigna Corp., a leader in outcomes-based reimbursement, has signed value-based contracts for the two PCSK9 inhibitors on the market for high cholesterol. Cigna's contracts with Amgen Inc. for Repatha (evolocumab) and with Sanofi/Regeneron Pharmaceuticals Inc. for Praluent (alirocumab) are independent of each other, but share the same objective: if patients taking the drugs aren’t able to reduce their LDL-C levels at least as much as clinical trial participants did, the drugmakers will discount the products more steeply than the rebates already negotiated. In addition to LDL-C reduction, Cigna also hopes to analyze data for cardiovascular outcomes. The contract with Cigna is the third value-based reimbursement arrangement Amgen has made for Repatha (it also has deals with Harvard Pilgrim and CVS Health Corp.) and the first Sanofi and Regeneron have publically disclosed for Praluent.
Top Financing: Homology Banks $43 Million For Gene Editing
5AM Ventures and ARCH Venture Partners led a $43.5 million Series A round for Homology Medicines Inc.[See Deal] Helmed by CEO Arthur Tzianabos, PhD, and other ex-Shire executives,Homology will pursue gene editing and gene therapy using vectors derived from naturally occurring human adeno-associated viruses, an approach that the start-up thinks confers advantages over competing technologies. The company licensed its IP from Saswati Chatterjee, PhD, and the Beckman Research Institute at the City of Hope in California.
Top M&A: Quintiles And IMS Come Together
CRO Quintiles Transnational Holdings Inc. has agreed to merge with health care data giant IMS Health Inc. in a deal worth $9 billion. The combined company, to be called Quintiles IMS Holdings, aims to "create a distinctive global real-world evidence solutions platform by combining a leading portfolio of anonymous patient records, technology-enabled data collection and observational research experts to address critical health care issues of cost, value and patient outcomes.” Well yes, not to mention the significant cost savings and accelerated growth potential that execs from both companies expect if the deal goes through. Although billed as a merger of equals, IMS Health shareholders will own 51.4% of the combined company, which will have a market cap close to $18 billion.