Deals In Depth: June/July 2016
Executive Summary
Celgene and Novartis each signed $3 billion immuno-oncology deals, with Jounce and Xencor, respectively; Galenica Group made a $1.5 billion acquisition for a hyperkalaemia drug. Public financings grew from May to July in the biopharma industry, but decreased month over month in the device sector.
Exhibit 1
Top Alliances In June/July 2016
Potential deal value is the sum of up-front fees plus pre- and post-commercialization money.
Strategic Transactions
Exhibit 2 Top Mergers & Acquisitions In June/July 2016
|
M&A |
Up-Front Total ($m) |
Total Earn-Outs ($m) |
Potential Deal Value ($m) |
Price-To-Sales (Ratio) |
|
Biopharma |
||||
|
Galenica Group pays $1.53bn for Relypsa Inc. [See Deal] |
1,530 |
NA |
1,530 |
82.48 |
|
Generic drug company Gland Pharma Ltd. acquired by Chinese conglomerate Fosun International Ltd.'s Shanghai Fosun Pharmaceutical Group Co. Ltd. [See Deal] |
1,260 |
NA |
1,260 |
NA |
|
Merck & Co. Inc. buys Afferent Pharmaceuticals Inc. for $500m cash and $750m in potential earn-outs |
500 |
750 |
1,250 |
NA |
|
Device |
||||
|
Medtronic PLC pays $1.1bn in cash for HeartWare International Inc. [See Deal] |
1,100 |
NA |
1,100 |
3.68 |
|
Zimmer Biomet Holdings Inc. pays $1bn for spine device maker LDR Holding Corp. [See Deal] |
1,084 |
NA |
1,084 |
6.59 |
|
Terumo Corp. acquires US aneurysm embolization device maker Sequent Medical Inc. [See Deal] |
280 |
100 |
380 |
NA |
|
Diagnostics |
||||
|
Laboratory Corp. of America Holdings tenders $302m offer to acquire women's health diagnostics firm Sequenom Inc. [See Deal] |
302 |
NA |
302 |
2.35 |
|
Sartorius Corp. pays $16m for ViroCyt Inc. [See Deal] |
16 |
NA |
16 |
NA |
Strategic Transactions
Exhibit 3 Financings By Type ($m)
Strategic Transactions
Exhibit 4
Seven-Month Snapshot Of Public And Private Financing
Strategic Transactions