Large-scale mergers in the biopharmaceutical sector continue to dominate: Q1 review
Headline: Asia-Pacific M&A Activity Focuses on Manufacturing Capabilities, Led by Japan, While Biopharma Deals Dominate Globally
In the first quarter of 2019, the Asia-Pacific region saw a decrease in mergers and acquisitions (M&A) activity, with deal volume in the low single digits, according to Cortellis Deals Intelligence from Clarivate Analytics. Japan led the way, with three M&A type deals announced and a disclosed value of $86.1 million, followed by China with $36.6 million.
However, the biopharmaceutical sector bucked this trend, with significant deals taking place globally. Notable among these was Eli Lilly's $8 billion acquisition of Loxo Oncology, a company focused on developing novel cancer treatments. Loxo's lead asset, larotrectinib sulfate, a tropomyosin receptor kinase inhibitor, is now available in the U.S. for solid tumors. The company's lead asset, LOXO-292 (selpercatinib), has shown good clinical progression in phase I/II trials. Bayer exercised an option for exclusive U.S. commercialization rights as part of a $1.6 billion license with Loxo.
Meanwhile, BMS made a $74 billion approach for Celgene, a company with a strong focus on oncology, immunity, and inflammation. Synergies between the two companies are expected to be significant. BMS's active drug portfolio heavily weighs towards pre-registered and launched assets, while Celgene's consists mainly of early stage programs.
In a separate development, Roche is pursuing market growth in genetic diseases by targeting Spark Therapeutics for $4.8 billion. Spark Therapeutics is a spin-out from the Children's Hospital of Philadelphia, focused on orphan genetic complications. The company's portfolio is built around an adeno-associated viral (AAV) gene therapy platform. Spark Therapeutics' only launched product, voretigene neparvovec (Luxturna), is licensed to Novartis and is forecast to reach billion-dollar revenue status in 2024, according to Cortellis Competitive Intelligence.
Lenalidomide, a drug widely available for myelodysplastic syndrome and multiple myeloma, generated $9.6 billion in sales in 2018 and is expected to reach $13.3 billion in 2021. Firms in both China and Japan targeted organizations with established antibody manufacturing technologies and facilities during the quarter.
Cortellis Deals Intelligence registered 124 new M&A during the first quarter of 2019, a 24% increase from the previous quarter. Total disclosed deal value declined by 9% to $119.2 billion compared to the previous quarter. However, M&A activity across companies based in key Asia-Pacific regions was low this quarter, with no specific mentions in the provided search results about companies merging or acquiring others to strengthen their manufacturing capabilities.
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