In order to supplement their own strength, large pharmaceutical companies are accelerating "buying, buying and buying"

Since the beginning of this year, many multinational large pharmaceutical companies have been continuously launching large-scale acquisitions to increase the number of innovative drugs, innovative medical devices and other fields
.
For example, on November 8, scientific instrument manufacturer Bruker Corporation announced the acquisition of Inscopix, an acquisition that will strengthen Bruker's position as a leader in functional brain imaging technology, using Ultima multiphoton microscopy at the cellular level and preclinical magnetic resonance imaging systems
at the organism level 。 Inscopix's flagship small microscope system has been deployed in more than 600 research institutions and biopharmaceutical companies around the world, enabling breakthroughs in basic neuroscience research and advancing understanding of neurological disease mechanisms
.
News on November 1, Johnson & Johnson said it will spend about $16.
6 billion to acquire artificial heart maker Abiomed (NASDAQ: ABMD) to consolidate its cardiovascular device business
.
Under the terms of the agreement, Johnson & Johnson will make an offer to acquire all outstanding shares of Abiomed with an advance payment of $380.
00 per share, equivalent to approximately $16.
6 billion
.
Abiomed shareholders will also receive up to $35 in cash equity
per share if established commercial and clinical milestones are reached.
The acquisition is expected to close by the end of the first quarter of 2023, and Johnson & Johnson intends to fund
the acquisition with cash on hand and short-term financing.
It is worth mentioning that thanks to the news, Abbiomeed's share price once soared 52%
before the market.
On Oct.
18, Eli Lilly said it had agreed to acquire precision genetic drug company Akou in a deal worth up to $610 million
.
Lilly said it would launch a cash tender offer for Akouos' shares at $12.
50 per share, totaling about $487 million, to be paid
at the close.
According to a statement, the deal includes per-share rights, and shareholders are entitled to up to an additional $3 in cash
based on certain events related to drug trials.
It is worth noting that in the pharmaceutical industry, Lilly has made frequent
acquisitions in recent years.
According to incomplete statistics, in the past 20 years, Lilly has initiated mergers and acquisitions worth nearly $30 billion, with two larger deals being the acquisition of ImClone for $6.
5 billion in 2008 and the acquisition of Loxo Oncology
for $8 billion in 2019.
The industry believes that the purpose of the Lilly acquisition is clear, and most of the products included in the pocket are heavy and potential products
.
For example, in January 2019, Lilly acquired Loxo Oncology and obtained a targeted therapy, cyptinib, which was approved by the FDA in May 2020, becoming the first oncology therapy approved for RET, with sales revenue
of more than $100 million in 2021.
Analysts believe that in any case, mergers and acquisitions/introductions are still one of
the best ways to supplement their own strength.
At a time when the valuation of biotechnology companies continues to decline, the probability of introduction/mergers and acquisitions will become more and more intense
.
At present, in China, including China Biopharmaceutical, Hengrui Pharmaceutical, CSPC Pharmaceutical Group, Grand Pharmaceutical, Huadong Pharmaceutical and other enterprises, there is also a strong desire for
mergers and acquisitions/introduction.
However, while pharmaceutical companies are accelerating their "buying, buying and buying", there are many
cases of failed acquisitions of pharmaceutical companies.
It is reported that on the evening of January 1, Wanbangde issued an announcement that the company decided to terminate the acquisition of 29.
5% of the shares
of Consun Pharmaceutical Group Limited 。 Subsequently, Fosun Pharma also announced that its holding subsidiary, Fosun Pharma Industrial Pte.
Ltd.
(hereinafter referred to as "Fosun Pharma Pte.
") THE ACQUISITION OF ONCOCARE MEDICAL PTE.
LTD, SINGAPORE'S LARGEST PRIVATE ONCOLOGY CENTRE,
WILL BE TERMINATED.
In this regard, the industry believes that how to find more valuable drugs and acquire them at a more appropriate price; After the completion of the merger and acquisition, how to make the purchased drugs really exert their value is more worthy of pharmaceutical companies to think about and solve
as soon as possible.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice
to anyone.