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

Clinical ResearchFrancePortugalEU

05.02.2016 It is not yet clear why a man died during a first-in-man clinical trial in January. However, a preliminary report found several “major shortcomings” by responsible CRO Biotrial. However, all regulations were complied with.

M&ASwitzerland

04.02.2016 After having dodged multiple takeover attempts by Monsanto last year, agrobusiness giant Syngenta has now agreed to be acquired by chemical corporation ChemChina. The Swiss company also announced plans to go public within a few years.

FinancingEUUKBelgium

01.02.2016 Newly formed Medicxi Ventures, a life sciences-dedicated VC firm based in London, Geneva and Jersey, has closed a €210m investment fund to reinvest in European early-stage assets.

ResearchUKEU

01.02.2016 Altering human DNA with the efficient gene editing method CRISPR/Cas9, especially germline modifications, was long considered a taboo. Now, however, UK scientists have received official approval to tinker with embryo DNA.

M&ASwedenIceland

28.01.2016 Swedish infectious disease specialist Enzymatica has bagged Icelandic company Zymetech, who produces the patent-protected enzyme used in Enzymatica’s own common cold blocker ColdZyme.

R&DUK

27.01.2016 Three UK universities have teamed up with three pharma companies to create the Apollo Therapeutics Fund. With the tech transfer fund, the consortium aims to develop scientific research into medicines.

Clinical TrialsGermany

25.01.2016 Affimed means to put a promising drug combination to the test. With support from MSD, the German biopharma will carry out clinical trials for an immunotherapy combining treatments of both companies.

AMREU

21.01.2016 Stop squandering antibiotics and make research profitable again: at the World Economic Forum in Swiss Davos, 83 pharmaceutical companies have called for a unified approach towards the threat of antimicrobial resistance.

M&AFinland

19.01.2016 Biotie Therapies has long been expanding its business in the US. Now, the Finnish company is set to be taken over by US company Acorda Therapeutics, which is paying €321m for the shares.

Drug AssessmentPortugalFrance

18.01.2016 A Phase I clinical trial for a drug developed by Portuguese pharma company Bial has ended in disaster. One man died, five others may have irreversible neurological damage.

Events

All Events

Current issue

All issues

Product of the week

Products

Stock list

All quotes

TOP

  • MAGFORCE (D)5.25 EUR5.00%
  • SAREUM HOLDINGS (UK)0.24 GBP4.35%
  • SCANCELL HOLDINGS (UK)18.25 GBP4.29%

FLOP

  • SWEDISH ORPHAN BIOVITRUM (S)12.45 USD-23.38%
  • BIOTIE THERAPEUTICS (FI)0.14 EUR-22.22%
  • IMMUPHARMA (UK)25.50 GBP-12.07%

TOP

  • EPIGENOMICS (D)4.46 EUR98.2%
  • THERAMETRICS (CH)0.05 CHF25.0%
  • WILEX (D)2.09 EUR19.4%

FLOP

  • PROTHENA PLC (IE)34.27 USD-37.2%
  • PLETHORA (UK)2.75 GBP-35.1%
  • BIONOR PHARMA (N)0.88 NOK-34.8%

TOP

  • KARO BIO (S)26.80 SEK3728.6%
  • CHRONTECH PHARMA (S)0.34 SEK3300.0%
  • 4SC (D)3.33 EUR291.8%

FLOP

  • NEUROVIVE PHARMACEUTICAL AB (S)8.80 SEK-85.6%
  • BIOTEST (D)14.11 EUR-84.5%
  • EVOCUTIS (UK)0.08 GBP-71.4%

No liability assumed, Date: 05.02.2016