Deals for the Week -18th May to 22ndMay

22nd May 2009......

Johnson & Johnson has ventured into biotechnology domain with a late-stage oncology drug in its pipeline. For this deal J&J will pay $1 billion cash to Cougar Biotechnology, which has drugs in its pipeline for prostate cancer, breast cancer and multiple myeloma. Cougar will work with Ortho Biotech Oncology R&D, a unit of Centocor R&D.

21st May 2009,

A new biotech start-up formed by collaboration of ex management team of Pharmion,who last year sold their venture to Celgendsne for $2.9 Billion, It includes domian associates, angel investors, venture funds, proquest investment.

The partnership lined up is worth $145 Million and the company is into early-stage cancer projects and will follow the old business plan of Pharmion.

21st May 2009.....

Lonza Swiss drug maker is going to invest around $ 150 Million in Hyderabad, India in genome valley SEZ and Phase II Biotech Park for R&D and bio-pharmaceutical manufacturing facility.this will be the biggest venture till date in biopharmaceuticals in india.

Fred Hassan........

After Merck and Schering- plough deal I started reading more about later CEO Fred Hassan.....Over the decade he has been involved in many Mergers and acquisition. Now Chairman of the Board and Chief Executive Officer for Schering- plough and Lead Director for Avon Products, Incorporated. Prior to this he was associated as Chairman for Pharmacia and Upjohn which had acquired Monsanto and later Pharmacia was acquired by Pfizer.....

Fred Hassan is worth more than 100 billion, a rough estimate as he was involved in many of the costliest deals of this decade....

Fred Hassan is a school for sales; business development is his own way..........I hope I have a chance to meet him in person sometime in future :)

Report on M&A Pharmaceuticals 1995-2009

New report on "Mergers and Acquisitions Report: Pharmaceutical industry 1995-2009" by Research and Markets.

The report contains list of over 11, 207 deals worth $ 1.992 Billion. The majority of deals were in US and Europe and were mostly national deals. Cross-border deals are also covered.

The pharmaceutical sector M&A was recorded at peak in year 2008. Out of the top 20 pharmaceutical deals, 2 Top deals took place this year 2009. Two Wall Street giants were financial advisors, JP Morgan for number of deals and Goldman Sachs by total known value. Legal advisor in terms of number of deals was Latham & Watkins and Skadden and for total know value of the deals was Arps, Slate,Meagher & Flom as on 11th March 2009

Key areas covered are M&A Activity in the Pharmaceutical Industry 1995-2009, Valuation of Pharma M&A, National and cross-border Pharma M&A, Pharma M&A by regions and countries, Top Pharma M&A Deals and league table of advisors in Pharma M&A

Novartis in news this May

Last week I heard that Novartis is going to exercises its right to purchase Additional Shares of Alnylam Common Stock after the both parties investor right agreement in year 2005. This week again Novartis was there in news stand for it purchase of generic injectable business of EBEWE pharma which is based in Austria, the deal is worth $1.2 Billion..........

Latest M&A in Pharma sector

May 19, 2009.....

After GSK now it is time for Takeda Pharmaceutical, Takeda is Japan's largest drug maker, and it said that it's US subsidiary is going to acquire U.S.-based IDM Pharma for $75 million, to make its presence felt in the cancer drug market.It has taken the responsibility for MEPACT®, IDM Pharma's biggest prize and Takeda US will be responsible for commercializing MEPACT in Europe.

May 18, 2009......

GlaxoSmithKline strategic alliance with Oxford Bio Therapeutics to develop novel cancer antibodies, with this deal Oxford bio therapeutics will be eligible for total $ 370 Million after achieving specified discovery, development, regulatory and commercialisation milestones.

May 15, 2009...........

GlobeImmune, Inc. and Celgene Corporation last week announced a strategic collaboration focused in area of drug discovery, development and commercialization of multiple product candidates based on powerful, targeted therapy for treatment of cancer. GlobeImmune will be eligible to receive over $500 million in development and regulatory milestones, with royalties and additional milestone payments based on the sales of licensed drug candidates.

SGI Acquired ........

This week mid I read a report of SGI been acquired.....I remember while I was doing my PG diploma in Bioinformatics in year 2002, very few companies and academic institutes had the favor of having an SGI machine and people use to boast by saying I do lot of my stiff in those SGI machines........as if working with them was a privilege :)

SGI systems are one of the best in their segment and I also had a privilege of working with them :)

Recession .......did it really effect Pharma and Biophrama sector

Yesterday after coming home from office I was analyzing the phrma merger and acquisition for last year and this year first quarter, I was amazed by the numbers and their multiples, and I felt that the so called global recession has not affected the pharma companies in a major way as it has posed threat to people's job in financial and service sector such as IT.

for instance the total Pharma deal in 2008 was worth $80billion and if we just take the average per quarter it comes out to be $20billion and if we just take pharma deals happened in 2009 Q1, it's 4 to 5 time more than the deal worth which occurred in the respective 2008 Q1.

So do u feel that the recession had somewhat serious effect on global pharma deal in 2009?

Your comments are really appreciated:)

Pharma different strategy......

Today as I was reading a jouranl's latest edition, i was shocked or terrified rather, the article described how Merck had presented data favorable for its products such as vioxx and fosamax , in the journal named “The Australasian Journal of Bone and Joint Medicine, which is published by Exerpta Medica, a division of Elsevier, the irony is that this journal is not at all indexed in Medline and some articles related to MSDA drugs in each issue presented positive conclusion.

The claim that Merck has created a journal which will serve as a marketing tool was first reported by The Australian sometime back.

Now the question which comes in my mind is that this marketing strategy might help pharmaceuticals to gain the confidence of the medical practitioners who fail to identify the disadvantages related to the drugs after been influenced by what they read in the journals and later they might prescribe the drugs to their patients.

It's high time that common man should be aware of what purpose they are taking the medication and what their sideeffects are?

More about this in coming series :)