Pharmaceutical Executive Digest Europe - January 21, 2009 - (Page 6) Top 15 Pharma Deals Cephalon maintain their high valuations as potential takeover targets. But their profits are likely to turn them into buyers, too. In November, Genzyme continued its acquisitive ways with a $1.4 billion milestone alliance with Osiris, whose adult stem cell platform is on course to deliver the first ever FDA approved treatment, Prochymal, currently entering Phase III in several categories. However, biotechs with just a single approved drug can still demand pretty exorbitant prices if a company’s need for fast revenue is sufficiently desperate. After Bristol-Myers Squibb offered $4.5 billion for ImClone, crafty activistinvestor Carl Icahn strung BMS’s CEO Jim Cornelius along by courting one or more secret bidders in a very public effort to trigger a bidding war. No slouch at such ploys, Cornelius refused to up his bid, and in October, the press-dubbed “mystery suitor” was revealed to be Lilly’s new chief, John Lechleiter, who finally inked the deal for $6.5 billion. In September both GSK and Pfizer signed big deals for single products. GSK dished out a record-breaking $3.2 billion for Actelion’s first-in-class insomnia drug, almorexant—pending good data from its Phase III trials. Meanwhile, Pfizer paid $775 million in milestones to Medivation for 60 percent of the potential US profits and for total potential foreign sales of Dimebon, which is set to enter Phase III trials this year in Alzheimer’s and Huntington diseases. Pharma M&As drop Overshadowed by the big biotech deals, the year’s few noteworthy pharma M&As were driven by the growing trend to diversify outside of the high-risk branded drug business. saw some consolidation when Teva, the global leader, bought rival Barr Pharmaceuticals, the world number four, for $7.5 billion. Spreading the risk around through diversification into generics drove not only the Daiichi/Ranbaxy deal but also Sanofi-aventis’ purchase of Zentiva for a revised $2.6 billion after the Czech generics firm snubbed a lower offer. Hot and cold diseases The main trends that have lately come to define pharma’s M&As, licensing deals, and other strategic alliances generally deepened in 2008. Cancer remains the hot disease, followed closely by CNS; together, these two therapeutic areas attracted more deals than all other diseases combined. In third place is the autoimmune and Top 15 Deals of 2008 Rank 1 2 Partners Roche & Genentech (pending) Novartis & Alcan Takeda & Millennium Teva & Barr Eli Lilly & ImClone Daiichi Sankyo & Ranbaxy Nordic Capital & Convatec (BMS) Fresenius & APP Pharm Roche & Ventana Sanofi-Aventis & Zentiva King & Alpharma Fuji Photo & Toyama Genzyme & Osiris TKG Capital & Axcan Shionogi & Sciele Date July 08 Apr 08 Apr 08 July 08 Oct 08 June 08 May 08 July 08 Jan 08 June 08 Aug 08 Feb 08 Nov 08 Nov 08 Sep 09 Value, US$B $43.7 $11.0 $8.8 $7.5 $6.5 $4.6 $4.1 $3.7 $3.4 $2.6 $1.6 $1.4 $1.4 $1.3 $1.1 Cancer remains the hot disease, followed closely by CNS; together, these two therapeutic areas attracted more deals than all other diseases combined. Novartis, arguably already both the most diversified and successful Big Pharma, acquired a 25% share of Alcon, the world’s most profitable eye-care company, for $11 billion, with an option to buy an additional 52% in 2010 for another $28 billion. Meanwhile, the generics business 3 4 5 6 7 8 9 10 11 12 12 13 14 8 HEALTH IT Obama and Biopharma! 11 BioFutures Forging a true industry– academia partnership 13 CALENDAR Next month’s pharma events 3 NEWS Pharma’s next ten years http://www.icahnreport.com/report/about.html
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