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    Home > Medical News > Medical World News > Behind the $100 billion marriage in the pharmaceutical industry

    Behind the $100 billion marriage in the pharmaceutical industry

    • Last Update: 2019-12-08
    • Source: Internet
    • Author: User
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    Author: 2019 is a year of frequent transactions and M & A in the global pharmaceutical industry According to the statistics of investgo, the number has reached more than 650, among which there are nearly 100 deals and mergers related to innovative drugs, and the total amount of the top 10 companies' Mergers and acquisitions has reached 180.9 billion US dollars M & A events in the pharmaceutical industry in 2019 (part) Source: investgo On November 21, BMS, the US pharmaceutical giant, announced the successful acquisition of celgene, with a price of 74 billion US dollars (about 520 billion yuan) The deal was announced in January 2019 to be officially completed Such a large-scale M & A can be completed in only 11 months, which is "super speed" in the history of M & A in the pharmaceutical industry The merger and acquisition could have been completed in Q3, 2019q, but it lasted until November In addition to investor opposition, the psoriasis drug otezla (apremillast) has become a barrier to acquisition In August this year, Xinji identified a buyer for its otezla Amgen agreed to buy the psoriasis drug for $13.4 billion The deal also became the largest single drug rights acquisition in 2019 According to the 2018 financial report, the total revenue of BMS is US $22.561 billion, of which 50% is contributed by two drugs, namely opdivo and eliquis New base's total revenue in 2018 is US $15.281 billion, of which Revlimid's sales are close to US $10 billion, but the product faces a patent cliff in the United States In early February, a decision by the U.S patent and Trademark Office reassured investors on both sides, ruling that Dr Reddy's challenge against three patents of Revlimid was invalid, which meant that Dr Reddy could not venture to list Revlimid's generic drugs before 2023 After the merger, the two companies are expected to save $2.5 billion in costs and significantly increase profits Giovanni caforio, chairman and CEO of BMS, pointed out in the completion of the transaction that "BMS + new base" will create the world's top product line in the field of tumor (solid tumor and blood tumor) Meanwhile, its R & D pipeline pillar will be built on the basis of opdivo, yervoy, as well as Revlimid and pomalyst, as immunosuppressive point inhibitors In June, abbvie announced an acquisition agreement with Allergan to buy the company for $63bn, which is expected to be completed in 2020q1 Four years ago, Pfizer put forward an intention purchase price of US $160 billion for Elgin This time, the offer of Elgin was nearly 40% off, which seems to be a big bargain However, there is also an industry view that it can not only look at the purchase figures, but also the debt data of Elgin For today's Allergan, this is a very fair price Ebway's total revenue in 2018 was US $32.733 billion, of which Humira set a sales record of US $19.936 billion, accounting for 60% of abbvie's total revenue Similar to abwi's heavy dependence on Humira, Elgin's revenue is mainly from Botox, a heavy drug According to the company's annual report, Elgin's sales in 2018 were US $15.7 billion, of which Botox (including medical and cosmetics) sales were US $3.577 billion, accounting for 34% of the company's total sales Upon completion of the acquisition, the company will reduce its dependence on Humira, a single product, which is crucial for the company, because after 2023, with the introduction of bio similar drugs into the U.S market, the sales revenue of Humira will decrease rapidly Array biopharma was founded in February 1998, and its main products on the market are the combination therapy of braftovi (encorafenib) + mektovi (binimetinib), which was approved by FDA in June 2018, for the treatment of BRAFV600E or brafv600k mutations From the perspective of product maturity, array is relatively a small innovative drug company with a revenue of 174 million US dollars in 2018 and has been in a state of net loss Compared with Pfizer's revenue of $53.6 billion in 2018, array's size is negligible In Pfizer's view, however, the $11.4 billion acquisition of array will diversify its cancer drug product line At present, array has more than 30 clinical trials for solid tumor indications, which may have a positive impact on Pfizer in the long run Pfizer is known as the "cosmic pharmaceutical factory", but it doesn't occupy a good position in the wave of tumor immunity (I-O) Bavencio (avelumab), the main PD-L1 product, didn't bring much good news to Pfizer in 2018 Pfizer's top three products sold in 2018 are prevnar 13, Lyrica, a pain drug, and ibrance, a new breast cancer drug Moreover, pregabalin's compound patent and pain indication patent have expired on December 30, 2018 In the view of Pfizer CEO Albert bourla, generic drugs have a serious impact on Pfizer at present The acquisition of array can lay a solid foundation for colorectal cancer business and effectively combine Pfizer's existing professional products of breast cancer and prostate cancer series On November 24, Novartis announced that it would purchase the drugs company, a U.S - based biopharmaceutical company, for $85 per share and a total of about $9.7 billion in cash The transaction has been unanimously approved by the board of directors of both parties The acquisition may add a new siRNA inhibitor inclisiran to Novartis, which may be the first of its kind and target PCSK9 The medicines company originally planned to submit the new drug listing application of inclisiran in the United States and Europe in Q4 2019 and Q1 2020 respectively In a press release, Novartis said that the listing of inclisiran may increase sales for Novartis in 2021 The expansion of the cardiovascular product line can also enable Novartis to better play its core business capabilities, including its strong cardiovascular front-line team in the United States and even in the world In addition, the transaction is also in line with Novartis' capital allocation strategy, namely, investing in transformative innovation and creating long-term value for shareholders Novartis' portfolio now includes the sale of $1 billion entresto due to heart failure and the $150 million acquisition earlier this year of experimental RNA targeting molecules for Ionis pharmaceuticals Compared with other "buy and buy" multinational giants, Lilly has relatively few large transactions in the industry When Lilly proposed to spend nearly $8 billion on Loxo oncology, a six-year-old biotech company, in January, the industry was generally shocked Loxo can be regarded as a black horse in the field of biotechnology Its popularity in the industry needs to start with larotrecinib (loxo-101), an FDA approved treatment drug for unlimited tumor species Larotrecinib is a drug that selectively targets the protein family of neurotrophic tyrosine kinase receptor (ntrk) On November 26, 2018, FDA approved it for the treatment of adult and child patients with locally advanced or metastatic solid tumors with ntrk gene fusion This is the second FDA approved cancer therapy based on biomarkers rather than tumor origin However, Bayer, Loxo's partner, immediately exercised its contractual rights and took away the rights of larotrecinib and its second-generation Trk inhibitor loxo-195, which made Lilly not even have the opportunity to jointly promote sales and weakened the significance of the original acquisition of Loxo Even so, Loxo can bring obvious reinforcement to Lilly's tumor product pipeline At this year's wclc and ESMO conferences, Lilly announced the clinical results of loxo-292 in the treatment of RET fusion positive non-small cell lung cancer and RET mutant medullary thyroid cancer respectively, and planned to submit loxo-292 new drug marketing application (NDA) to FDA by the end of 2019 From the logic of Lilly's business sector adjustment in the past two years, tumor and autoimmune drugs are the new highlights of its layout Among the top ten best-selling antitumor drugs in the world in 2018, Lilly has no products in the list Through the acquisition of Loxo, can Lilly return to the first tier in the field of cancer? Roche announced from February 2019 that it will spend nearly $5 billion to acquire spark, and plans to complete it in Q2 2019 However, on April 4, 2019, Roche said that its original plan to acquire spark therapeutics for $4.3 billion on April 3 was not completed and will be extended to May 2 But in May, Roche again said that the FTC needed more time to complete its assessment and that the deal still needed to be delayed In July 2019, the boards agreed to extend Roche's $4.3 billion deadline to acquire the US gene therapy company In a document submitted to US regulators, Roche said the new deadline for the two companies to extend the merger agreement is now April 30, 2020, rather than January 31, 2020 Roche said the change provided additional time to close the deal Roche's acquisition of spark will lead to luxturna, a gene therapy already on the market for the treatment of hereditary blindness, and spk-8011, an innovative gene therapy under development for hemophilia A A, which is expected to carry out phase III clinical trials in 2019 On December 3, 2019, Estella announced a total of about $3 billion for audentes, whose main pipeline is gene therapy Audentes is currently the fastest growing product for the treatment of X-linked neuromuscular degenerative disease at132 According to the ability of AAV8 to target skeletal muscle, at132 can increase the expression of myotubulin in the target tissue after a single intravenous injection, providing the patients with significantly improved results At the 24th International Annual Meeting of the world muscle society in October, audentes announced the results of 12 patients participating in its aspiro trial The results show that the first seven patients of at132 gene therapy are now able to stand or walk without ventilator It is precisely because of this positive result that anstela has attracted more than twice the market value of the acquisition In a press release, Kenji Yasukawa, President and CEO of Astaire, said that the products of audentes are a supplement to the existing pipelines of Astaire, especially the leading project at132 for the treatment of X-linked tubular myopathy (xlmtm) Estelle hopes to establish a leading position in gene therapy through cooperation with audentes According to the investment ecosystem of the United States, if entrepreneurs master / acquire potentially heavy technology / candidate products, it is an option to establish a "small and beautiful" innovative drug enterprise Early irrigation of venture capital, with the continuous promotion of pipeline, followed by IPO and refinancing in secondary markets such as NASDAQ, and finally the acquisition of giant pharmaceutical companies It's not hard to find that the purpose of M & A launched by multinational giants in 2019 is not only to improve the future profitability through M & A due to heavy products and poor R & D, but also to purchase product pipelines and new treatment means initiated by giants to maintain a leading position.
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