News

Biopharma: M&A activity slows
Enlarge image

BusinessSwitzerlandEU

Biopharma: M&A activity slows

19.11.2012 - Big Pharma has spent less money on M&A this year than in 2011, a new report from Deloitte Recap reveals.

Last year, only US$245bn were spent on acquisitions in the life sciences field, according to the analysts from Deloitte Recap LLC. And this year might even get worse: Only US$142bn were invested in this year’s first nine months. The stream of investments has become a feeble trickle – it’s likely that 2012 will end with another drop in the already low M&A sums. Together with similarly shrinking venture capital investments and reduced milestone payments in licensing deals, this adds up to bleak prospects.

Experts hadn’t expected this development. On the contrary, in the wake of the economic crisis, analysts assumed that the number of deals would rise, even though the single acquisition would cost less. But just the opposite says Deloitte Recap's senior biotech analyst Chris Dokomajilar: The industry would be catching its breath, working through the consolidation period while selectively picking off companies that can be easily bagged and bolted on to a big organisation.

Industry is getting increasingly adverse against taking risks. The kind of biotech looking most appealing to buyers at the moment would be a developer with a Phase II asset that's cleared the proof-of-concept hurdle, says Dokomajilar, where the buyer is looking at a significantly de-risked approach to late-stage trial work. This holds true, if you take a look at the five top dealmakers in licensing and joint venture, compiled by FierceBiotech: While leader Roche/Genentech (total deal volume US$1.37bn) closed deals for products in discovery stage or preclinical testing, runners up Abbott (total deal volume: US$1.37bn) and Merck & Co. (total deal volume: US$1.3bn) focused on products in Phase II and Phase III respectively.

According to Dokomajilar, there are some indicators that the situation might improve in the future: "The past few years brought a tremendous amount of liquidity," Dokomajilar told FierceBiotech, counting US$215b in "committed" dollars, upfront and equity payments offering investors a chance to cash out. Many of those investor groups are required to reinvest a portion of their cash in this industry. This means that a lot of that money should be flowing back in. That, however, still hasn’t happened yet.

© eurobiotechnews.eu/bk

http://www.european-biotechnology-news.com/news/news/2012-04/biopharma-ma-activity-slows.html

New reportEU

25.11.2014 The European biotech IPO slump has finally come to an end. A brand new industry report shows that compared to previous years, the number of biotech IPOs more than doubled in 2014, with London and Paris exchanges leading the pack.

M&AIreland

19.11.2014 It’s not every day that a company is pushed into the top ten of its sector, but that day has come for Actavis. Christmas came early for the new pharma giant after completing a US$66bn (€53bn) takeover battle for the Botox manufacturer Allergan.

Drug DevelopmentGermany

18.11.2014 Merck KGaA and US rival Pfizer have signed a immuno-oncology alliance worth billions: Merck will share the development and commercialisation of its cancer antibody with its US partner – for €2.3bn.

FinanceFrance

14.11.2014 Cosily coinciding with World Diabetes Day on 14th November, French biopharma Les Laboratories Servier has struck a US$1bn deal with US pharma Intarcia Therapeutics for the exclusive rights to Intarcia’s unprecedented therapy for type 2 diabetes.

AwardsFranceGermanySweden

12.11.2014 Glitz and glamour are not words often used to describe science and mathematics. But once a year, celebrities from the science and showbiz world come together at the Breakthough Prizes, a glitzy television bash that honours scientists for their achievements. French life scientist Emmanuelle Charpentier was among this year’s winners.

ResearchEU

10.11.2014 EFPIA’s specialised group Vaccines Europe and the Innovative Medicines Initiative (IMI) have launched a €280m Call for proposals aimed to address the Ebola crisis.

Trade fairGermanyEU

07.11.2014 3,200 participants from 54 countries attended the 20th issue of BIO-Europe. The overall mood of the European biotech sector was modestly optimistic.

AcquisitionGermanyUKSweden

05.11.2014 German Definiens AG has a new owner: Astrazeneca’s biologics R&D arm Medimmune has taken over all the shares of the imaging specialist for US$150m.

AcquisitionSwedenDenmarkUK

04.11.2014 Galecto Biotech has entered an agreement with Bristol-Myers Squibb for the acquisition of the company and its lead drug, providing the Swedish company with the potential of reaching over US$400m.

FinancingSwedenNorway

31.10.2014 Another biotech is leaving the European market place in favour of a US IPO. Swedish Cortendo is now planning to go public in the US after raising €8.8m in bridge financing.

Events

All Events

Current issue

All issues

Product of the week

Products

Stock list

All quotes

TOP

  • MEDIGENE3.95 EUR2.33%
  • 4SC0.92 EUR2.22%
  • BIOTEST80.77 EUR1.62%

FLOP

  • CYTOS0.27 CHF-6.90%
  • CO.DON2.56 EUR-3.40%
  • WILEX2.10 EUR-2.78%

TOP

  • CYTOS0.27 CHF58.8%
  • EPIGENOMICS5.20 EUR36.8%
  • FORMYCON10.74 EUR36.1%

FLOP

  • 4SC0.92 EUR-13.2%
  • CO.DON2.56 EUR-12.6%
  • BIOFRONTERA2.59 EUR-9.4%

TOP

  • SANTHERA92.00 CHF2321.1%
  • CO.DON2.56 EUR156.0%
  • BB BIOTECH185.30 EUR63.0%

FLOP

  • CYTOS0.27 CHF-91.9%
  • 4SC0.92 EUR-48.3%
  • THERAMETRICS0.07 CHF-46.2%

No liability assumed, Date: 26.11.2014