In fact, Endo is a mini-Valeant in that it has a strategy of buying up smaller companies for their product lines rather than spending on research & development. Slectionnez Grer les paramtres pour grer vos prfrences. GW Pharmaceuticals is the biggest player in pharmaceutical uses of cannabis, with a market cap of $3.9 billion, making it the sixth-largest marijuana-related stock in the world. The two companies discussed a potential merger, uniting two of the largest pharmaceutical companies. The company currently sports two FDA-approved therapies: Sunosi for excessive daytime sleepiness due to narcolepsy and Auvelity for major depressive disorder. No wonder Jazz wants to get in on the hype. Special-Situation And Event-Driven Ideas To Improve Risk Adjusted Returns, 15 years of investing and I feel like a rookie in his first year at the academy. Colao formed Aurinia's commercial organization and helped launch Lupkynis last year. Merck, under outgoing CEO Ken Frazierand now retired research chief Roger Perlmutter, has stayed away from large-scale dealmaking. Pfizer made a hostile bid, just after the announcement of a $72 billion deal with Wyeth, the eventual purchase price would be in excess of $90 billion. There are all kinds of expensive research reports floating around that estimate the Naxolone spray market at $1.1 billion already or that project growth to $1.94 billion by 2028 or $1.3 billion in 2031. What Will Make Miners Reclaim Their Luster? Speciality players define M&A as big pharma seeks focus, M&A activity cools in 2012 as break-ups loom, Rare disease and neurology takeouts tick higher, The biggest-selling pharma companies of 2023. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. In a report earlier this month, RBC As per Indivior CEO Mark Crossley on the merger (I've emphasized what I think regulators would take note of): "Opiant's portfolio of product candidates is an excellent strategic fit that diversifies and strengthens our offerings, while Indivior's strong commercial capabilities are expected to propel a combined product pipeline with the potential to help patients along a continuum from substance use disorder and rescue to recovery. The drug, approved by the U.S. Food and Drug Administration (FDA) in November 2018, is starting to look like a blockbuster therapy. Second bid, unanimously rejected by the Shire Board, who concluded that it significantly undervalue the Company, its growth prospects as well as pipeline. All rights reserved. Over the course of more than a year, Pandion turned down Merck's offers to license its research, set up a 50-50 partnership and twice acquire the company,before agreeing to be bought for $60 per share. Sheel will manage relations with investors and analysts. That same day, Pandion made a counter-offer of $60 per share that Merck later agreed to following additional due diligence and inspections of contract manufacturers used by Pandion. I wrote this article myself, and it expresses my own opinions. Namely, Alnylam's shares are already trading at close to 16 times 2023 projected sales. Speaking to this point, Pfizer recently doled out $5.4 billion to acquire Global Blood Therapeutics for its sickle cell disease assets. A buyer, therefore, would probably have to be willing to pay up to around 20 times 2023 estimated sales (roughly $32.6 billion or about $272 a share) to win over Alnylam's key stakeholders. Per maggiori informazioni sulle modalit di utilizzo dei dati, consulta la nostra Informativa sulla privacy e lInformativa sui cookie. Clovis leading drug Rubraca (rucaparib), a poly (ADP-ribose) polymerase (PARP) inhibitor, has been approved by the FDA for the treatment of ovarian and prostate cancer. Bayer initially opened negotiations with an offer of $125 per Monsanto share, however management felt this undervalued the company. Novartis ADR sees its Relative Strength Rating reach the 80-plus Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! List of largest pharmaceutical mergers and acquisitions, GlaxoSmithKlineNovartis Consumer Healthcare, "FirstWord Lists The 20 largest pharma M&A deals", Bristol-Myers set $2.2 billion termination fee for their mega deal, "Allergan Accelerates Transformation to Branded Growth Pharma Leader by Divesting Global Generics Business to Teva for $40.5 Billion", "Teva CEO: $40.5 Billion Allergan Deal is Just the Beginning", "Teva Snaps Up Allergan's Generics Arm, Dumping Mylan", "Pfizer And Allergan Merger Ranks As Biggest-Ever Pharmaceutical Deal", "Japan's Takeda clinches 45.3 billion Shire deal as pharma M&A rolls on", "FirstWord Lists The 20 largest pharma M&Adeals", "Pfizer Ends $160B Acquisition of Allergan after U.S. Epidiolex is used to treat seizures associated with Lennox-Gastaut syndrome or Dravet syndrome, two rare forms of epilepsy. Speaking to this point, Pfizer recently doled out $5.4 billion to acquire Global Blood Therapeutics for its sickle cell disease assets. Hikma Pharmaceuticals PLC closed 4.32 short of its 52-week high (21.37), which the company reached on March 25. This is largely because cash is easy to raise, from public and private investors alike, leaving sellers with little incentive to negotiate anything other than gold-plated terms. I gravitate towards special-situations. They are always uniquely structured which makes them a little bit of a headache to figure out. This includes the mega acquisition of Celgene for $74B followed by $13.1B buyout Bristol-Myers Squib is still lagging behind in the innovation race as per Idea Pharmas The drug is responsible for most of GW Pharmaceutical's revenue, including $132.6 million of the company's reported $137.1 million third-quarter sales. Tobira had suffered a big clinical setback before Allergan swooped, and was actually bought for a historically depressed price, despite the high premium. 2000-2023 Investor's Business Daily, LLC. Gilead will have to hope that its big splurge turns out to be a better use of its cash. Jim Halley has no position in any of the stocks mentioned. A 2nd request means the antitrust authorities would look into the deal more profoundly, and it means things take a lot longer. This happens a lot when pharma or biotech companies with important unapproved assets get bought. Hypothetical or modeled portfolio results do not represent the results of an actually Note that there is always a chance (however slight) that the deal won't close, and then you are looking at 60% downside or more. Making the world smarter, happier, and richer. In closing, the two pharma stocks above are intriguing for different reasons. Merck's first attempt was in late January 2020, when the pharma offered Pandion $65 million upfront to acquire the biotech's research, including its most advanced drug candidate at the time, PT-101. The ultimate proposal was more than double Pandion's closing stock price a day before the deal, and three-and-a-half times higher than the biotech's initial public offering price last July. However, the drug is supposed to challenge Naloxone, owned by Emergent BioSolutions (EBS). That's not to say that Axsome can't turn Auvelity into a commercial success, but the path of least resistance is definitely the buyout route. I love to get a CVR during a takeover process. But it seems likely that many desirable assets are simply too expensive to consider right now, which in the long run benefits no one, whether buyingor selling. A wave of patent expirations for top-selling drugs such as Eliquis, Humira, and Opdivo is set to hit the industry over the course of the current decade. Thats because their growth is declining as major drug patents expire; they need to turn to acquisitions to help jump-start growth. Community of 3.1K+ wholesalers, manufacturers and product distributors. 1/17/2023 Sign up for free today. WyattResearch.com and, through its subscription services, various investment newsletters, trade alerts, and On Wednesday, Jazz Pharmaceuticals (JAZZ 0.26%) announced it's buying GW Pharmaceuticals (GWPH) for $7.2 million. Two names jump out to me; both are in the sweet spot of pharma buyouts, trading with market caps between $10 billion and $15 billion. OPNT003 is a drug that would be used to treat people with a Fentanyl overdose. By using this site, you agree that we may store and access cookies on your device. A global pandemic has done nothing to crimp M&A premiums, with acquirers forced to swallow ever higher price tags. In late 2021, reports suggested Bristol Myers Squibb (BMY) and Novartis (NVS) were at the negotiating table with Aurinia. Trading in securities involves risks, including the risk of losing some or all "We are planning to repurchase Sam Bankman-Fried's interest in Semafor and to place the money into a separate account until the relevant legal authorities The biotech is still waiting to treat its first commercial patient with Zynteglo, but says it has not seen insurers deny coverage for the beta thalassemia drug. A development stage biopharmaceutical company focused on the discovery and development of novel therapies aimed at treating common inflammatory conditions for which there are limited treatment options. Indivior has around a billion dollars in cash and investments and a favorable free cash flow profile. Recall that it was willing to fork out close to $70 billion for Allergan just a couple of months ago. Wyeth confirmed it has agreed a $200 billion deal with WarnerLambert, causing Pfizer to make a hostile bid, just after the announcement. Watch these two pharma companies with big buyout potential: Endo just completed the $2.6 billion buyout of Auxilium Pharmaceuticals, which has two branded testosterone products. Four key factors are driving this notable uptick in pharma M&A. You take these, so you don't use/abuse substances. However, the U.S. Treasury passed laws, tightening down on. +15303348684. Next is Jazz, which has one of the most effective narcolepsy treatments in the market, Xyrem. *Real-time prices by Nasdaq Last Sale. The biotech company, with a market capitalization of about $18 billion, is in talks with Amgen, Sanofiand Johnson & Johnsonunit Janssen Global Services. Compliance. Get this delivered to your inbox, and more info about our products and services. whether an investment is appropriate given your financial needs, objectives, and risk appetite. offer to sell or the solicitation of an offer to buy any security. Vous pouvez modifier vos choix tout moment en consultant vos paramtres de vie prive. Tepezza had generated nearly $1.5 billion in the nine months ended Sept. 30, a growth of 37% from last year, while Krystexxa garnered $500 million, up 27% from the prior year. The uncertainties wrought by a global pandemic have seemingly failed to transfer any power back to acquirers, and those with desirable assets look set to remain in a very strong position. The average yield of the Dow has sunk to 2.1%. After all, the richest deals in this space have generally come in at around six to eight times peak estimated revenue. Informations sur votre appareil et sur votre connexion Internet, y compris votre adresseIP, Navigation et recherche lors de lutilisation des sites Web et applications Yahoo. Cliccando su Accetta tutto accetti che Yahoo e i suoi partner possano trattare i tuoi dati personali e utilizzare tecnologie come i cookie per mostrarti annunci e contenuti personalizzati, per la misurazione degli annunci e dei contenuti, per l'analisi del pubblico e per lo sviluppo dei prodotti. Dr. Rahul Gupta, head of the White House Office of National Drug Control Policy, points out that last year alone, 80,000 Americans died from opioid overdoses. Valeant Pharmaceuticals and activist investor Bill Ackman offered to buy Botox maker Allergan, proposing a cash-and-stock deal worth about $152.89. The combination with Opiant will provide Indivior with one of the most comprehensive and relevant treatment platforms to address the ongoing U.S. opioid and overdose epidemic and extends our leadership position in addiction treatments. Why is Alnylam a possible takeover target? Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. 2. GW Pharmaceuticals has not consistently made a profit since its founding in 1998, but the company is showing the way toward profitability, thanks to expanded use of its lead therapy, Epidiolex, a liquid formulation of plant-derived cannabidiol used to treat rare childhood-onset epilepsy disorders. And in the meantime, buying back its own shares something thats unusual for smaller pharma companies but not a negative in this case. This list is incomplete, you can help by expanding it. The Jazz product pipeline is strong, despite the current reliance on Xyrem. Moreover, these gene-silencing drugs have an unusually strong competitive moat due to their unique nature and outstanding clinical profiles. 2023 CNBC LLC. ET. Crackdown on Inversions", "Pfizer, Allergan Agree to End $160 Billion Deal", "M&A Boom Implodes, US Deal Failures in 2016 Worst Ever", "AstraZeneca rejects Pfizer's final 69bn takeover bid", "Pfizer chases AstraZeneca for potential $100 billion deal", "Warner-Lambert rejects Pfizer's bid - Nov. 4, 1999", "Pfizer Makes Bid for Warner-Lambert (washingtonpost.com)", "WARNER-LAMBERT GETS PFIZER OFFER FOR $82.4 BILLION", "Warner Lambert. The information has been obtained from sources we believe to be reliable; however no guarantee is made or implied with respect to its accuracy, timeliness, or completeness. Puoi cambiare le tue preferenze in qualunque momento nella sezione Le tue impostazioni per la privacy. The chart below calculates this from the targets average share price over the 30 days before a deal was announced. Opiant Pharmaceuticals, Inc. (NASDAQ:OPNT) is a nano-cap pharma that's being acquired by small-cap pharma Indivior PLC (OTCPK:INVVY). There are 36 U.S. states where medical marijuana is legal, so it seems obvious that medical-use cannabis has a huge upside. Transactions are recorded by the highest transaction dollar value (rather than using the inflation adjusted values). Indivior specializes in drugs that treat addiction. Amgen spent $3.7 billion on a deal None of the case studies, examples, testimonials, investment return or income claims made on WIRs website , Mar 28, 2022 As of early 2022, the largest deal in pharmaceutical industry history was Pfizers acquisition of Warner-Lambert for nearly 90 billion U.S. dollars in 2000. A lot will depend on how much better the product is and if it justifies a premium price. The Opiant assets are aimed at patients that have overdosed. Investors expect another lackluster year in IPOs, while company restructurings look set to continue as biotech executives try to conserve cash. Make more money in stocks with 2 months of access to IBD Digital for only $20! Time to Buy? It works fast. On top of that, there will be obvious cost savings when the companies combine, mostly by trimming redundant personnel. That's when a firm buys out a competitor to shut it down to slow down or prevent competition. The plant has active ingredients called cannabinoids that are said to have a broad range of medical benefits. The pharma industry knocked off the tech industry to take the No. Jazz bought the Xyrem brand back in 2005 when it bought Orphan Medical. 1 Potential Buyout Candidate: Endo International (NASDAQ: ENDP) Endo just completed the $2.6 billion buyout of Auxilium Pharmaceuticals, which has two branded On today's stock market, AUPH stock toppled 9.4% to 10.49. Denali could be attractive buyout target for Takeda Pharmaceutical Co. Ltd., its partner in a 2018 neurodegenerative disease collaboration. Its receivables-to-revenue ratio is one of the top in the industry. Jazz also has a strong balance sheet, with less than $800 million in net debt (debt less cash). Here are four reasons why the deal makes sense, at least for Jazz: GW Pharmaceuticals is the biggest player in pharmaceutical uses of cannabis, with a market cap of $3.9 billion, making it the sixth-largest marijuana-related stock in the world. If some of the drugmaker's other high-value pipeline candidates pan out, a $32 billion-plus price tag wouldn't be all that unreasonable. Since 2020 I host a podcast/videocast where I discuss (special-situation/event-driven) market events and investment ideas with top analysts, portfolio managers, hedge fund managers, experts, and other investment professionals. Data is a real-time snapshot *Data is delayed at least 15 minutes. However, that doesn't seem to be the case here. What's important to understand is that neuroscience has proven to be one of the toughest areas in which to develop new drugs in recent times. I think Jazz will be able to make more out of GW Pharmaceutical's pipeline and will increase its revenues and margins with the buyout. In early February, Merck proposed a buyout at a price of $40 per share, which it revised two days later to $50 per share. Horizon, which makes drugs for rare, autoimmune and severe inflammatory diseases, however, added there can be no certainty that any offer will be made. Already this month, weve seen two multi-billion-dollar pharma buyouts. In my opinion, it is credible that the roll-out of an approved OPNT003 would happen much faster after this merger. Invest better with The Motley Fool. To my understanding, the clock starts running on the CVR once the product is approved. But takeover talk has largely cooled down since late last year. The company is also applying to the FDA to get Narcan approved for OTC sale. Private equity firms that deemed drug development too risky for their liking in the past are increasingly investing in the sector, raising dedicated funds and coming up with deals That's if we simplify the situation to assume the merger closes. Boosting this years average are takeovers from Nestle and Alexion, of Aimmune and Portola respectively, deals that rank among the five richest across all the years in this analysis. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. 8 Meme Stocks Are Soaring Again (AMC And GameStop Aren't On Top), Oil Giant Exxon Fuels Buy Point With 159% EPS Growth On Tap. Narcolepsy is the condition responsible for excessive daytime sleeping. Valuations across the industry have fallen drastically over the past 10 months. If KarXT's other indications, such as Alzheimer's disease psychosis, pan out, the drug is predicted to generate over $5 billion in annual sales at peak, putting it in the running to possibly hit megablockbuster status one day. AstraZeneca claimed the deal undervalued the company. A buyer would thus have to be fairly confident that Alnylam's deep value proposition will indeed bear fruit. An antitrust regulator would likely not be thrilled with a pharma tying up the market of addiction treatment and/or overdose treatment. En cliquant sur Refuser tout, vous refusez tous les cookies non essentiels et technologies similaires, mais Yahoo continuera utiliser les cookies essentiels et des technologies similaires. I'm interested in what quants do, options traders do, and even what WallStreetBets is doing (keep your friends close and). For This is likely a decent investment even if Opiant Pharmaceuticals, Inc. is 80% likely not to achieve even the first milestone paying out $2. Past success is not a Clicca su Gestisci impostazioni per maggiori informazioni e per gestire le tue scelte. Wall Street has the drug's peak sales for this indication pegged at $1.2 billion. The push included direct pressure from Pfizer partner BioNTech to censor activists demanding low-cost generic vaccines for low-income countries, Fang wrote. Not so for Synthorx and Spark, the takeovers of which were presumably competitive processes. Before that, reports said Bristol Myers could be negotiating a deal. But right now naloxone is often really hard to get. If you have an ad-blocker enabled you may be blocked from proceeding. EBS projects nasal naloxone product sales within $350mm$365mm. And despite the Salix buy, Valeant still has plenty of firepower. The eventual purchase price would be more than $66 billion. You should perform Readers are Clovis announced a $71.3 million net loss for the second quarter of 2022. Rather, it is choosing to wait for the right opportunity. If youd like to tap into this income stream, and earn six times bigger dividends,click here for our full report on this opportunity. Pour en savoir plus sur notre utilisation de vos informations, veuillez consulter notre Politique relative la vie prive et notre Politique en matire de cookies. When you look at the fact that Jazz is expected to grow earnings at a near-25% annualized rate over the next half decade, its hard not to like the pharma companys prospects. It has also estimated more than $1.5 billion in peak U.S. annual sales of its second largest drug Krystexxa, used for the treatment of gout that is not controlled by other medicines. Subscribe to BioPharma Dive for top news, trends & analysis, The free newsletter covering the top industry headlines, Ymmunobio Appoints Dr. Michel Janicot as Chief Development Officer, Vial Announces New Central Nervous System Scientific Advisory Board Member, Dr. Jacqueline Fre, Vivera Expands TABMELT Global Licensing Reach with Grant of Israel Patent, Azzur Group Appoints Ming Wang as Director, Consulting Services for Azzur San Francisco, By Jacob Bell, Ben Fidler and Jonathan Gardner, By signing up to receive our newsletter, you agree to our, 5 questions facing emerging biotech in 2023, Gene therapy approval won, Bluebird takes on next challenge: selling it, Novo Nordisk diabetes pill wins FDA approval for first-line use, Leap Therapeutics to buy Flame Biosciences in all-stock deal, With reverse merger, Elicio becomes latest biotech to bypass an IPO, Build and Manage Your Own Studies More Quickly Without Relinquishing Control, Sickle Cell Cure Brings Mix of Anxiety and Hope, Merck Set to Remove Cancer-Causing Chemical From Diabetes Drugs in 2023, After four years of big talk, mega startup Sana prepares to deliver, 2023 PDA Annex 1 and Contamination Control Strategy Workshops. The company has remained resilient during the M&A boom in pharma, refraining from making recklessacquisitions. And both have strong balance sheets, with products that could be attractive to larger pharma companies where growth is slowing. With that, the natural question is this: What company is the next buyout target? Innovation in biotech will continue to be rewarded. - Pfizer: One of the world's premier biopharmaceutical companies", "American Home Products Discusses A Merger With Warner-Lambert", "Bayer sweetens Monsanto bid as talks enter final stretch", "Statement re Proposal from Takeda Pharmaceutical Company Limited", "Allergan agrees to $66 billion Actavis offer; Valeant walks", "Valeant Raises Takeover Offer for Allergan a Second Time", "Valeant Raises Takeover Offer for Allergan With More Cash", "Monsanto Drops $46.5B Bid For Syngenta, Paving Way For Stock Buyback Amid Market Rout", "Syngenta rejects Monsanto's takeover approach", "Reuters: Monsanto, Syngenta hire U.S. banks to advise on possible takeover", "Valeant, Bill Ackman bid $45B for Botox-maker Allergan", "Monsanto Said to Have Weighed $40 Billion Syngenta Deal", "Teva Offers to Buy Mylan in $40.1B Cash-And-Stock Deal", "Endo Ends Effort to Wrest Merger-Bound Salix from Valeant - GEN Genetic Engineering & Biotechnology News - Biotech from Bench to Business - GEN", https://en.wikipedia.org/w/index.php?title=List_of_largest_pharmaceutical_mergers_and_acquisitions&oldid=1077126324, Lists of corporate mergers and acquisitions, Articles with dead external links from July 2021, Short description is different from Wikidata, Articles with unsourced statements from June 2019, Creative Commons Attribution-ShareAlike License 3.0, In November 2015 Pfizer announced it would acquire. Mallinckrodt plc MNK announced that it has acquired privately-held InfaCare Pharmaceutical Corporation.. However they later re-negotiated a lower price of $21.5 billion. I've allocated a ~3.8% of the net asset value of my portfolio here. Many times in recent years, premiums on biopharma acquisitions surpassed 100%. There are a number of big pharma companies that are expected to grow earnings at an annualized rate of less than 2% for the next five years. Monsanto dropped its hostile bid for Syngenta, refocusing on its five-year plan to double earnings and avoid a backlash from large shareholders. Novartis ADR sees its Relative Strength Rating reach the 80-plus level. So a prospective buyer would be pursuing Endo not only for the growth potential, but for the money it could still collect from past sales. This page was last edited on 14 March 2022, at 17:14. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. As a new option for a hard-to-treat form of depression, Wall Street thinks this drug can haul in over $2 billion in annual sales. Generics have just arrived on the market from Teva (TEVA) and Sandoz. So why the sudden interest in buying up smaller pharma companies? $2.00 per CVR upon achievement of net sales of OPNT003 of $300 million or more during any period of four consecutive quarters prior to the seventh anniversary of the U.S. commercial launch of OPNT003.

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