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Pharmas spend billions on M&A
Posted 15 January 2018
Although 2018 is only two weeks old, several pharma companies have hit the ground running in a bid to bolster their pipelines, reaching deep into their pockets and spending billions on late-stage drug hopefuls in a sign 2018 could be a bumper year for M&A activity.
Two San Diego biotechs with promising late-stage candidates were the first big targets of the year, with Celgene and Roche snapping one apiece for a combined price tag of USD8.7 billion.
Suffering from a lacklustre pipeline in 2017, Celgene is buying a late-stage blood disease JAK2 kinase inhibitor through Impact Biomedicines in a deal worth up to USD7 billion.
Celgene is paying Impact USD1.1 billion upfront and anticipates filing fedratinib for approval in myelofibrosis later this year, with a promise of another USD1.25 billion in potential payments if it wins regulatory approvals.
Fedratinib, which is also in trials for polycythemia vera, fits well with Celgene's expertise in haematology.
Roche is also keen to launch into 2018 with a stronger pipeline, paying USD1.7 billion to acquire Ignyta - a Californian biotech specialising in precisely targeted oncology drugs guided by partner diagnostic tests.
The merger highlights Roche's interest in pursuing these personalised treatments in oncology with Ignyta's entrectinib, a selective CNS-active tyrosine-kinase inhibitor being developed for tumours which harbour ROS1 proteins or neurotropic tropomyosin receptor kinase (NTRK) fusions in non-small cell lung cancer (NSCLC), as well as NTRK fusions across a broad range of solid tumours.
Entrectinib has already been granted PRIME designation by the EMA and a Breakthrough Therapy designation by the FDA.
Takeda has also been busy this year, announcing it is spending USD625 million to acquire TiGenix NV and USD150 million to enter a drug development deal with Denali Therapeutics, focused on neurodegenerative diseases.
The TiGenix buyout gives Takeda full ownership of Cx601, a drug for complex perianal fistulas in patients with less severe forms of luminal Crohn's disease who haven't responded to at least one biologic treatment in the past. The two companies inked a licensing agreement for Cx601 in 2016, and are expecting an approval decision from the EMA before July.
The collaboration with Denali seeks to advance and commercialise up to three product candidates with genetically validated targets for neurodegenerative disorders, including Alzheimer's disease.
The move comes as Pfizer announced it would halt its efforts to discover and develop new medicines for common neurological diseases such as Alzheimer's, cutting 300 jobs in the process. It is continuing to pursue treatment for rare neurological and neuromuscular conditions.
AstraZeneca also chose to downsize rather than up, closing 2017 with the sale of US rights and new drug applications for four drugs to ANI Pharmaceuticals.
ANI agreed to pay USD46.5 million in cash, royalties, and sales-based milestones to gain access to AZ's hypertension drugs Atacand (candesartan) and Atacand HCT and cancer treatments Arimidex (anastrozole) and Cosudex (bicalutamide). All four drugs are marketed by AZ in Australia and face strong generic competition.
Megan Brodie
megan.brodie@lushmedia.com.au
Posted 15 January 2018
Although 2018 is only two weeks old, several pharma companies have hit the ground running in a bid to bolster their pipelines, reaching deep into their pockets and spending billions on late-stage drug hopefuls in a sign 2018 could be a bumper year for M&A activity.
Two San Diego biotechs with promising late-stage candidates were the first big targets of the year, with Celgene and Roche snapping one apiece for a combined price tag of USD8.7 billion.
Suffering from a lacklustre pipeline in 2017, Celgene is buying a late-stage blood disease JAK2 kinase inhibitor through Impact Biomedicines in a deal worth up to USD7 billion.
Celgene is paying Impact USD1.1 billion upfront and anticipates filing fedratinib for approval in myelofibrosis later this year, with a promise of another USD1.25 billion in potential payments if it wins regulatory approvals.
Fedratinib, which is also in trials for polycythemia vera, fits well with Celgene's expertise in haematology.
Roche is also keen to launch into 2018 with a stronger pipeline, paying USD1.7 billion to acquire Ignyta - a Californian biotech specialising in precisely targeted oncology drugs guided by partner diagnostic tests.
The merger highlights Roche's interest in pursuing these personalised treatments in oncology with Ignyta's entrectinib, a selective CNS-active tyrosine-kinase inhibitor being developed for tumours which harbour ROS1 proteins or neurotropic tropomyosin receptor kinase (NTRK) fusions in non-small cell lung cancer (NSCLC), as well as NTRK fusions across a broad range of solid tumours.
Entrectinib has already been granted PRIME designation by the EMA and a Breakthrough Therapy designation by the FDA.
Takeda has also been busy this year, announcing it is spending USD625 million to acquire TiGenix NV and USD150 million to enter a drug development deal with Denali Therapeutics, focused on neurodegenerative diseases.
The TiGenix buyout gives Takeda full ownership of Cx601, a drug for complex perianal fistulas in patients with less severe forms of luminal Crohn's disease who haven't responded to at least one biologic treatment in the past. The two companies inked a licensing agreement for Cx601 in 2016, and are expecting an approval decision from the EMA before July.
The collaboration with Denali seeks to advance and commercialise up to three product candidates with genetically validated targets for neurodegenerative disorders, including Alzheimer's disease.
The move comes as Pfizer announced it would halt its efforts to discover and develop new medicines for common neurological diseases such as Alzheimer's, cutting 300 jobs in the process. It is continuing to pursue treatment for rare neurological and neuromuscular conditions.
AstraZeneca also chose to downsize rather than up, closing 2017 with the sale of US rights and new drug applications for four drugs to ANI Pharmaceuticals.
ANI agreed to pay USD46.5 million in cash, royalties, and sales-based milestones to gain access to AZ's hypertension drugs Atacand (candesartan) and Atacand HCT and cancer treatments Arimidex (anastrozole) and Cosudex (bicalutamide). All four drugs are marketed by AZ in Australia and face strong generic competition.
Megan Brodie
megan.brodie@lushmedia.com.au
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