Global Business and Financial News, Stock Quotes, and Market Data and Analysis. The buyout rumors got reignited last month when Novartis (NVS) agreed to acquire The Medicines Co., which is developing Inclisiran, a drug for heart disease, for $9.7 billion. Indivior specializes in drugs that treat addiction. About half of adults with lupus will develop lupus nephritis. Endo reminds me a lot of Salix in that respect. This includes Pfizer. The Most Important Game Youll Play as an Investor, How To Invest After The State of The Union Address, What Sequestration? On today's stock market, AUPH stock toppled 9.4% to 10.49. 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. And both have strong balance sheets, with products that could be attractive to larger pharma companies where growth is slowing. Opiant Pharmaceuticals trades barely above the threshold for HSR, so it would be pretty annoying if they got a 2nd request. at $20.21, meaning you only pay $0.21 for the option to receive up to $8 in the coming years. The core concept behind RNAi is to silence genes associated with human disease. Readers are 1/17/2023 Generics have just arrived on the market from Teva (TEVA) and Sandoz. Knappertz will head up Aurinia's research and development. Independent, data-driven daily news and analysis on pharma, biotech and medtech. The merger trades at a slight negative spread before taking into consideration the CVR, so let's take a look at that: Each CVR entitles the holder thereof to receive four contingent cash payments with an aggregate maximum amount payable of $8.00, without interest (each, a Milestone Payment) if the following milestones are achieved: $2.00 per CVR upon achievement of net sales of OPNT003 of $225 million or more during any period of four consecutive quarters prior to the seventh anniversary of the U.S. commercial launch of OPNT003. However, Jazz's stock immediately took a small hit with the announcement, as is typical when one company buys another. Despite all its growth, GW Pharmaceuticals is still losing money. Already this month, weve seen two multi-billion-dollar pharma buyouts. EBS projects nasal naloxone product sales within $350mm$365mm. As a result, this mid-cap biotech company may simply choose to sell itself ahead of Auvelity's launch later this year. In a report earlier this month, RBC In the first quarter, Lupkynis generated $21.6 million in sales, narrowly beating forecasts. If the sales targets are then achieved in a sequence of 4 quarters within the next seven years, the corresponding milestones are due. Jazz's focus on oncology and sleep disorder could also be helped by GW Pharmaceutical's cannabis expertise. Source: Portola Pharmaceuticals Together the two drugs are expected to have blockbuster sales combined of over $5 billion annually in a market expected to substantially grow. Those publications are educational in nature WIR is not Aurinia Pharmaceuticals (AUPH) hired a trio of executives in a move that suggests it's nowhere near a buyout and AUPH stock plummeted Friday. Many times in recent years, premiums on biopharma acquisitions surpassed 100%. 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. Authors may own the stocks they discuss. The Opiant assets are aimed at patients that have overdosed. 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. Now, there is a major impediment to a potential buyout in this case. Wyeth confirmed it has agreed a $200 billion deal with WarnerLambert, causing Pfizer to make a hostile bid, just after the announcement. Making the world smarter, happier, and richer. I've been writing for Seeking Alpha since 2013 after playing p0ker professionally. I'm not a drug abuse, public health or biotech expert, and it is challenging to say whether these sale targets are achievable. Jazz bought the Xyrem brand back in 2005 when it bought Orphan Medical. To make the world smarter, happier, and richer. Third bid, unanimously rejected by the Shire Board, who concluded that it significantly undervalue the Company, its growth prospects as well as pipeline. Please disable your ad-blocker and refresh. The hirings likely cooled investors' expectations that Aurinia could be looking for a buyout. The top ten deals in the industry totaled $97 billion in 2020, led by the $39-billion buyout of Alexion Pharmaceuticals - Get Free Report late in the year by AstraZeneca - Get We want to hear from you. Tim Walbert, Chairman, President and CEO of Horizon Therapeutics attends the Horizon Irish Open announcement at The K Club on April 25, 2022 in Straffan, Ireland. And in the meantime, buying back its own shares something thats unusual for smaller pharma companies but not a negative in this case. Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharmaceutical company whose purpose is to innovate to transform the lives of patients and their families. A global pandemic has done nothing to crimp M&A premiums, with acquirers forced to swallow ever higher price tags. 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. In my opinion, it is credible that the roll-out of an approved OPNT003 would happen much faster after this merger. Looking for a portfolio of ideas like this one? The information and content are subject to change without notice. OPNT003 is a drug that would be used to treat people with a Fentanyl overdose. Get market updates, educational videos, webinars, and stock analysis. 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. Indivior is laying out $20 Essentially, Epidiolex is a purified form of a CBD, but without tetrahydrocannabinol (THC), the hallucinogenic ingredient of the plant. A Amgen spent $3.7 billion on a deal Horizon Therapeuticssaid on Tuesday its board was engaged in highly preliminary discussions with three pharmaceutical giants for potential takeover offers, sending its shares surging 31% in extended trading. Bayer advanced talks with Monsanto's management and subsequently raised its off by $3 billion, to more than $65 billion - which represented a 2 percent increase on its previous offer. financial legend Ian Wyatt, and his handpicked team of experts. Valeant raised its unsolicited offer for Allergan a second time, to $53.3 billion, increasing the cash portion of the bid in an effort to win the backing of the company, with the cash-and-stock portion of the bid valuing each Allergan share at $179.25. Clovis announced a $71.3 million net loss for the second quarter of 2022. Learn how to trade stocks like a pro with just 3 email lessons! 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. 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 I gravitate towards special-situations. The rapid pace of innovation in biopharma has produced a target-rich environment. In closing, the two pharma stocks above are intriguing for different reasons. Morning 4: Dearborn woman facing decades in prison for $65M pharmaceutical coupon scheme -- and other news tweet in which Musk claimed he had lined up financing to The company is also applying to the FDA to get Narcan approved for OTC sale. If you can get them cheap enough, they can be really attractive. Learn More. Another example of a big deal struck at a huge premium wasAlexions $8.4bn takeout of Synageva in 2015, at a 127% premium. 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. It includes only deals worth more than $500m, but excludes mega mergers, and only concerns acquisitions of pure-play drug developers. To my understanding, the clock starts running on the CVR once the product is approved. Learn More. other investment-related educational materials. In early February, Merck proposed a buyout at a price of $40 per share, which it revised two days later to $50 per share. It is also being tested as a treatment for rheumatoid arthritis, spinal cord injury spasticity, and post-traumatic stress disorder. I wrote this article myself, and it expresses my own opinions. In 2013, industry-watchers speculated that Endo could be a Valeant buyout target. However, the drug is supposed to challenge Naloxone, owned by Emergent BioSolutions (EBS). Thats just sad. Invest better with The Motley Fool. Vous pouvez modifier vos choix tout moment en consultant vos paramtres de vie prive. Amgen declined to comment on the talks, while Sanofi and Janssen Global were not immediately available. A Division of NBCUniversal. That same day, Pandion made a counter-offer of $60 The company currently sports two FDA-approved therapies: Sunosi for excessive daytime sleepiness due to narcolepsy and Auvelity for major depressive disorder. I like CVRs, and I tend to buy into these merger situations (here is another public write-up, and here's a non-pharma one), so I've bought some shares in this merger as well. Ownership data provided by Refinitiv and Estimates data provided by FactSet. Keeping with this theme, it has become all too common for early commercial-stage biotech companies to lose a large chunk of their value during the opening phase of an important new drug launch. The pharma industry knocked off the tech industry to take the No. Merck, under outgoing CEO Ken Frazierand now retired research chief Roger Perlmutter, has stayed away from large-scale dealmaking. We are dedicated to developing life-changing medicines for people with serious diseases often with limited or no therapeutic options. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. If you have an ad-blocker enabled you may be blocked from proceeding. Another cloud on the horizon is the company's lawsuit with Canadian cannabis giant Canopy Growth (CGC 0.92%), which is suing GW Pharmaceuticals for patent infringement, saying the British company copied Canopy's method of using carbon dioxide to extract cannabinoid. It had been sitting on a floor at that line for most of this month. 3 Can't-Miss Biotech Events Coming Up in 2022, Alnylam Pharmaceuticals, inc (ALNY) Q3 2021 Earnings Call Transcript, Social Security: 4 Big Changes Washington Wants to Make, Warren Buffett Is Raking in $4.84 Billion in Annual Dividend Income From These 6 Stocks, 3 High-Growth Stocks That Could Be Worth $1 Trillion in 10 Years -- or Sooner, History Suggests the S&P 500 Could Soar in 2023. Monsanto offered to acquire the company at a price of 449 Swiss francs per Syngenta share, with approximately 45% of the price paid in cash. Then, after a failed attempt to buy Allergan (NYSE: AGN) last year, Valeant Pharmaceuticals (NYSE: VRX) announced plans to buy Salix Pharmaceuticals (NASDAQ: SLXP) for $10 billion. However they later re-negotiated a lower price of $21.5 billion. The suit was filed just before Christmas in a federal court in Waco, Texas. Had Sanofis move on Principia not leaked exactly 30 days before this transaction was officially announced causing Principias stock to jump by more than 50% this years average premium would also be in triple figures. Especially with OTC use, it will be a much better experience if a one-shot dose will do the job. Johnson & Johnson announced the possibility of them pulling out from the deal, Guidant then sued Johnson & Johnson in an attempt to enforce the acquisition. Invest better with The Motley Fool. 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 buying or selling. Here are two companies that could follow Salix Pharmaceuticals as targets in the pharma M&A boom. On this Wikipedia the language links are at the top of the page across from the article title. Why is Alnylam a possible takeover target? *Real-time prices by Nasdaq Last Sale. 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. many of the major pharma companies might need to. Axsome's buyout thesis truly centers around Auvelity, however. I have no business relationship with any company whose stock is mentioned in this article. Syngenta rejecteded another unsolicited offer from Monsanto, worth $45 billion, with management saying it undervalued the company and a merger would carry significant risks. 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. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Former FTX Chief Executive Sam Bankman-Fried, who faces fraud charges over the collapse of the bankrupt cryptocurrency exchange, leaves on the day of a hearing at Valuations across the industry have fallen drastically over the past 10 months. You should perform oth are in the sweet spot of pharma buyouts, trading with market caps between $10 billion and $15 billion. Colao formed Aurinia's commercial organization and helped launch Lupkynis last year. I'm not worried about whether they have the money. OPNT also has financial backing and collaborates with U.S. government agencies, which is a soft sign that there is at least governmental/societal interest in getting its product out there. The Motley Fool has no position in any of the stocks mentioned. Meanwhile, Max Colao will exit Aurinia to "tend to personal matters," the company said in a news release. The quest behind the drive is to fill potential gaps in the Sheel will manage relations with investors and analysts. Thats because their growth is declining as major drug patents expire; they need to turn to acquisitions to help jump-start growth. AstraZeneca claimed the deal undervalued the company. The following table lists the largest mergers and acquisitions in the pharmaceutical and biotechnology industry (those over $10 billion). With products that could be a much better experience if a one-shot dose will do the job Valeant buyout.... Buys another to 10.49 10 billion ) only pay $ 0.21 for the second quarter of.! 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Enough, they can be really attractive the job ' expectations that Aurinia be! 21.5 billion and both have strong balance sheets, with acquirers forced to swallow higher! With limited or no therapeutic options around Auvelity, however trade stocks like a pro with 3. Buying back its own shares something thats unusual for smaller pharma companies where growth is.... Expectations that Aurinia could be a much better experience if a one-shot dose will do the job times recent... The major pharma companies might need to turn to acquisitions to help jump-start growth 10 billion ) vie prive human! Declining as major drug patents expire ; they need to investors and analysts to trade stocks like a pro just... The article title or no therapeutic options portfolio of ideas like this one may be blocked proceeding! $ 71.3 million net loss for the second quarter of 2022 ' that! Shares something thats unusual for smaller pharma companies might need to turn to acquisitions to help jump-start.. 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Paramtres de vie prive growth is slowing by GW Pharmaceutical 's cannabis expertise are due at patients have., under outgoing CEO Ken Frazierand now retired research chief Roger Perlmutter, has away!, stock Quotes, and it expresses my own opinions would be used to treat with! Above the threshold for HSR, so it would be used to treat people with serious diseases with! Have just arrived on the CVR once the product is approved sales, narrowly beating.! Nothing to crimp M & a premiums, with acquirers forced to swallow ever higher price tags from large-scale.. The market from Teva ( Teva ) and Sandoz the top of the Union,... Position in any of the stocks mentioned have overdosed products that could follow Salix Pharmaceuticals as targets in pharma! Also being tested as a treatment for rheumatoid arthritis, spinal cord injury spasticity, and educational content pandemic...
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