12 Jun 2013, Amrita Tejasvi, BioSpectrum
Most pharmaceutical companies are sitting on the patent cliff and their drug pipelines are facing severe exhaustion. The big players of the industry are thus looking for mergers & acquisitions (M&A) strategies in order to enrich their shrinking opportunities in the life science sector. Although, the overall mergers and acquisitions (M&A) scenario was dismay during 2012 (owing to big pharma's consolidation of transactions from the previous year), it received a boost and was upbeat in the first quarter of 2013. The first quarter of 2013 saw these firms make several M&A transactions with many other life science companies.
While Pfizer sold 20 percent of its animal health business, Zoetis, which offers medicines, vaccines, diagnostic products, genetic tests, and a range of services related to animal health, pharmaceutical company Allergan acquired MAP Pharmaceuticals, a development-stage company focused on neurology therapies, including its lead product candidate, Levadex, for approximately $957 million.
Other interesting facts and figures:
• What were the top 20 global transactions of 2012?
• What were the top 20 deals in the pharma and biotech sector in 2012?
Stryker acquired Trauson, China-based manufacturer of trauma and spine orthopaedic implants and tools, for approximately $764 million, and Gilead acquired YM BioSciences, a drug development company engaged in the development of hematology and cancer-related products, at $473 million.
While Illumina acquired diagnostics manufacturer, Verinata Health, for approximately $450 million, Biogen acquired Elan's rights to Tysabri (natalizumab) for approximately $3.3 billion. Furthermore, Royalty Pharma plans to acquire Elan at $6.6 billion and Argon Medical Devices is planning to acquire Angiotech Pharmaceuticals.
Moreover, while Mylan plans to acquire Agila Specialties, a developer of generic injectable products, from Strides Arcolab, Valeant Pharmaceuticals plans to acquire Obagi Medical Products, a manufacturer of topical aesthetic and therapeutic skin-health systems for approximately $437 million.