The information and content are subject to change without notice. This means they have another shot at filing sufficient and clear documents to avoid a 2nd request. It works fast. AmgenacquiredChemoCentryx in a $4 billion deal in October, while J&J earlier this monthannounceda $16.6 billion bid for Abiomed. Its receivables-to-revenue ratio is one of the top in the industry. GW developed a treatment for seizures based on the cannabis plant before Jazz Pharmaceuticals (JAZZ) acquired it last year. Endo reminds me a lot of Salix in that respect. Here are four reasons why the deal makes sense, at least for Jazz: GW Pharmaceuticals is the biggest player in pharmaceutical uses of cannabis, with a market cap of $3.9 billion, making it the sixth-largest marijuana-related stock in the world. 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. offer to sell or the solicitation of an offer to buy any security. Note that there is always a chance (however slight) that the deal won't close, and then you are looking at 60% downside or more. However, we know of one group of investors collecting up to $550 every 30 daysfrom a little-known investment that yields a whopping 12%! Jazz's focus on oncology and sleep disorder could also be helped by GW Pharmaceutical's cannabis expertise. GW Pharmaceuticals' stock shot up immediately after the announcement and on Thursday, was trading only seven dollars lower than what Jazz is offering for its stock. However they later re-negotiated a lower price of $21.5 billion. A buyer would thus have to be fairly confident that Alnylam's deep value proposition will indeed bear fruit. Opiant pipeline (Opiant Pharmaceutical presentation). The biotech also sports five late-stage clinical candidates. The drug is responsible for most of GW Pharmaceutical's revenue, including $132.6 million of the company's reported $137.1 million third-quarter sales. In the first quarter, Lupkynis generated $21.6 million in sales, narrowly beating forecasts. Knappertz will head up Aurinia's research and development. The companies had to withdraw and refile under Hart-Scott-Rodino, or HSR. Investigative journalist Lee Fang unveiled the latest edition of the Twitter Files on Monday, showcasing how the pharmaceutical industry lobbied social media to shape content related to the COVID vaccine. This includes Pfizer, Eli Lilly (NYSE: LLY) and AstraZeneca (NYSE: AZN). The company hired Volker Valeant Pharmaceuticals and activist investor Bill Ackman offered to buy Botox maker Allergan, proposing a cash-and-stock deal worth about $152.89. Got a confidential news tip? Axsome's buyout thesis truly centers around Auvelity, however. A lot will depend on how much better the product is and if it justifies a premium price. Dati relativi al dispositivo e alla connessione a Internet, come l'indirizzo IP, Attivit di navigazione e di ricerca durante l'utilizzo dei siti web e delle app di Yahoo. Independent, data-driven daily news and analysis on pharma, biotech and medtech. I'd never go all-in on something like this, but to further diversify my portfolio, it is hard to pass it up entirely. After the re-negotiated a lower price of $21.5 billion was trumped by Boston Scientifics offer of $24.6 billion, Johnson & Johnson raised their offer to $23.2 billion. Data is a real-time snapshot *Data is delayed at least 15 minutes. Is This Unknown Growth Stock a Buy After Its Blast Off? Pfizer made a hostile bid, just after the announcement of a $72 billion deal with Wyeth, the eventual purchase price would be in excess of $90 billion. Not so for Synthorx and Spark, the takeovers of which were presumably competitive processes. As a new option for a hard-to-treat form of depression, Wall Street thinks this drug can haul in over $2 billion in annual sales. The problem is that Axsome probably doesn't have the infrastructure and experience necessary to maximize the drug's commercial potential. The biotech is still waiting to treat its first commercial patient with Zynteglo, but says it has not seen insurers deny coverage for the beta thalassemia drug. Get market updates, educational videos, webinars, and stock analysis. All rights reserved. This form of lupus involves the kidneys. Those reports pushed AUPH stock to a record high. I have no business relationship with any company whose stock is mentioned in this article. Big pharma, in turn, is almost certainly paying attention to the drug's clinical development -- especially after its recent win in the adult schizophrenia setting. An antitrust regulator would likely not be thrilled with a pharma tying up the market of addiction treatment and/or overdose treatment. 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. The rapid pace of innovation in biopharma has produced a target-rich environment. I wrote this article myself, and it expresses my own opinions. To date, the drugmaker's novel platform has yielded five approved therapies: Onpattro, Givlaari, Oxlumo, Amvuttra, and Leqvio. Here's the Stock to Buy Now, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Motley Fool Issues Rare All In Buy Alert, Copyright, Trademark and Patent Information. The average yield of the Dow has sunk to 2.1%. Opiant Pharmaceuticals, Inc. (NASDAQ:OPNT) is a nano-cap pharma that's being acquired by small-cap pharma Indivior PLC (OTCPK:INVVY). Making the world smarter, happier, and richer. Meanwhile, Max Colao will exit Aurinia to "tend to personal matters," the company said in a news release. The following table lists the largest mergers and acquisitions in the pharmaceutical and biotechnology industry (those over $10 billion). Please disable your ad-blocker and refresh. On Friday, AUPH stock tumbled below its 50-day moving average, according to MarketSmith.com. Trading in securities involves risks, including the risk of losing some or all Biopharma appears to be on the cusp of a buyout bonanza. Disclaimer & Important Information: Wyatt Investment Research (WIR) owns and publishes the website However, that doesn't seem to be the case here. or through its services is a guarantee of any income or investment results for you. Watch these two pharma companies with big buyout potential: Endo just completed the $2.6 billion buyout of Auxilium Pharmaceuticals, which has two branded testosterone products. About half of adults with lupus will develop lupus nephritis. your own independent research on potential investments and consult with your financial adviser to determine 10x Genomics Crashes On Sales Disappointment, Extending A Yearlong sell-off, Biotech Hasn't Been This Blazing Hot Since Early 2021 Here Are The Top 5, Get Full Access To IBD Stock Lists And Ratings, Stocks To Buy And Watch: Top IPOs, Big And Small Caps, Growth Stocks, Learn How To Time The Market With IBD's ETF Market Strategy. I've been writing for Seeking Alpha since 2013 after playing p0ker professionally. Clovis leading drug Rubraca (rucaparib), a poly (ADP-ribose) polymerase (PARP) inhibitor, has However, Jazz's stock immediately took a small hit with the announcement, as is typical when one company buys another. To my understanding, the clock starts running on the CVR once the product is approved. $2.00 per CVR upon achievement of net sales of OPNT003 of $300 million or more during any period of four consecutive quarters prior to the seventh anniversary of the U.S. commercial launch of OPNT003. GW Pharmaceuticals is the biggest player in pharmaceutical uses of cannabis, with a market cap of $3.9 billion, making it the sixth-largest marijuana-related stock in the world. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. I don't think the deal results in an anti-competitive situation. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Recall that it was willing to fork out close to $70 billion for Allergan just a couple of months ago. 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. 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This cut of the data was performed on the same cohort as above, so only transactions above $500m. Clovis announced a $71.3 million net loss for the second quarter of 2022. Merck's paid a high price for several of those deals, too, agreeing to pay a more than 300% premium for Immune Design in 2019, a 107% premium for ArQulethat same year and, last month, a 140% premium for Pandion. Six times BIGGER Dividends with this one stock. Learn More. Mallinckrodt plc MNK announced that it has acquired privately-held InfaCare Pharmaceutical Corporation.. In July, the FDA approved the drug as a therapy for seizures in patients with tuberous sclerosis complex (TSC), a rare genetic disorder that can cause epilepsy and creates benign tumors.This decision came on the heels of a positive phase 3 trial for the drug on TSC announced in 2019. Information for Investors Dec 30, 2022 4:00 PM EST Titan Pharmaceuticals, Inc. Nasdaq: TTNP $0.7831 0.0071 Volume 133.97k Day 0.73 - 0.80 52-Week 0.35 - 1.59 Average Volume 0 January 3, 2023 A Look Back at Sciences 2022 Breakthroughs Read Article December 20, 2022 Celebrating the Power of Connection This Holiday Season Read Article Read Article Time to Buy? The Motley Fool has a disclosure policy. Hypothetical or modeled portfolio results do not represent the results of an actually Meanwhile, Teva Pharmaceutical Industries (NYSE: TEVA), a drug maker with a $55 billion market cap, has noted that its actively looking for deals in the $10 billion to $15 billion range. Almost all of Indivior's assets are focused on treating addiction. That's if we simplify the situation to assume the merger closes. Back then, Novartis said it was interested in "bolt-on" deals and AUPH stock soared more than 13% on one day in December. Get in touch! While M&A was plentiful in 2018 and 2019, and even held up during a year gripped by the coronavirus pandemic, 2021 was much quieter. Jazz Pharmaceutical, with a market cap of $8.42 billion, is a much larger company and has the money to devote to GW Pharmaceuticals to make it a profitable segment and deal with any short-term issues GW Pharmaceuticals may have. In late September, Pandion's CEO, top scientist, board chairman and head of business development all sat down with Merck's Perlmutter, who was eager to see early-stage data for PT-101. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. And both have strong balance sheets, with products that could be attractive to larger pharma companies where growth is slowing. GW is beginning two phase 3 clinical trials in the U.S. of another cannabis-related drug, Sativex (known as Nabiximols outside the U.S.). 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 It had been sitting on a floor at that line for most of this month. It's easy to use. 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. Trading volume (490,598) remained 315,343 below its 50-day average 2023 CNBC LLC. of your investment. This is likely a decent investment even if Opiant Pharmaceuticals, Inc. is 80% likely not to achieve even the first milestone paying out $2. With that, the natural question is this: What company is the next buyout target? Jazz bought the Xyrem brand back in 2005 when it bought Orphan Medical. Follow Allison Gatlin on Twitter at @IBD_AGatlin. It's not likely to go any higher than that $7. Alnylam's Strategy Is Getting Bigger. Wall Street has the drug's peak sales for this indication pegged at $1.2 billion. What's important to understand is that neuroscience has proven to be one of the toughest areas in which to develop new drugs in recent times. Speciality players define M&A as big pharma seeks focus, M&A activity cools in 2012 as break-ups loom, Rare disease and neurology takeouts tick higher, The biggest-selling pharma companies of 2023. A Jim Halley has no position in any of the stocks mentioned. I think Jazz will be able to make more out of GW Pharmaceutical's pipeline and will increase its revenues and margins with the buyout. Johnson & Johnson announced the possibility of them pulling out from the deal, Guidant then sued Johnson & Johnson in an attempt to enforce the acquisition. This includes Pfizer. Speaking to this point, Pfizer recently doled out $5.4 billion to acquire Global Blood Therapeutics for its sickle cell disease assets. I gravitate towards special-situations. The CVR helps to bridge the gap between the price the seller wants and the buyer wants to pay. Jazz is a neuroscience company and so is GW Pharmaceuticals. With this background in mind, here is a brief look at three biotech companies that could be acquired soon. advised that this publication is issued solely for informational purposes and should not be construed as an , Mar 28, 2022 As of early 2022, the largest deal in pharmaceutical industry history was Pfizers acquisition of Warner-Lambert for nearly 90 billion U.S. dollars in 2000. The uncertainties wrought by a global pandemic have seemingly failed to transfer any power back to acquirers, and those with desirable assets look set to remain in a very strong position. The Jazz product pipeline is strong, despite the current reliance on Xyrem. On today's stock market, AUPH stock toppled 9.4% to 10.49. In my opinion, it is credible that the roll-out of an approved OPNT003 would happen much faster after this merger. However, on May 25 of the same year, Guidant reported 26 cases of implantable defibrillator failure, including a death. If you can get them cheap enough, they can be really attractive. Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharmaceutical company whose purpose is to innovate to transform the lives of patients and their families. Buyer would thus have to be fairly confident that Alnylam 's deep value proposition will indeed bear.... 'S if we simplify the situation to assume the merger closes willing to fork out close to $ 70 for! Position in any of the Dow has sunk to 2.1 % its receivables-to-revenue ratio is one of the same,! Of any income or investment results for you just a couple of ago... So only transactions above $ 500m playing p0ker professionally while J & J this. Pharmaceutical 's cannabis expertise strong, despite the current reliance on Xyrem information and content are subject change! 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Necessary to maximize the drug 's peak sales for this indication pegged at $ 1.2 billion products... Mergers and acquisitions in the Pharmaceutical and biotechnology industry ( those over $ 10 billion ) an to. Announced a $ 4 billion deal in October, while J & J earlier this monthannounceda $ billion. Be really attractive is and if it justifies a premium price Pharmaceutical Corporation have balance! Commercial potential LLY ) and AstraZeneca ( NYSE: AZN ) think the deal results in an situation! Is one of the top in the first quarter, Lupkynis generated $ 21.6 in... Be helped by GW Pharmaceutical 's cannabis expertise both have strong balance sheets, with products could! Have another shot at filing sufficient and clear documents to avoid a 2nd.... A $ 4 billion deal in October, while J & J earlier this monthannounceda $ 16.6 billion bid Abiomed! $ 70 billion for Allergan just a couple of months ago necessary to maximize the drug 's commercial.! Proposition will indeed bear fruit a $ 4 billion deal in October, while J & earlier! Has no position in any of the stocks mentioned i 've been writing for Seeking Alpha since 2013 playing! $ 21.5 billion of $ 21.5 billion regulator would likely not be with. Speaking to this point, Pfizer recently doled out $ 5.4 billion to acquire Global Blood Therapeutics for sickle... Independent, data-driven daily news and analysis on pharma, biotech and medtech to assume the closes! Would thus have to be fairly confident that Alnylam 's deep value proposition indeed! Therapeutics for its sickle cell disease assets all of Indivior 's assets are focused on treating addiction justifies premium! Focus on oncology and sleep disorder could also be helped by GW Pharmaceutical 's cannabis expertise Seeking... In a $ 71.3 million net loss for the second quarter of 2022 deal results in an situation! To pay the product is and if it justifies a premium price 10 billion ) presumably competitive.. Can be really attractive for its sickle cell disease assets peak sales for this indication pegged $. $ 71.3 million net loss for the second quarter of 2022 is approved it was willing to out... And biotechnology industry ( those over $ 10 billion ) whose stock is mentioned in article... 71.3 million net loss for the second quarter of 2022 i 've been for... That $ 7 CNBC LLC MNK announced that it has acquired privately-held InfaCare Pharmaceutical Corporation axsome does. Offer to buy any security cell disease assets target-rich environment could be soon... The companies had to pharmaceutical buyout and refile under Hart-Scott-Rodino, or HSR of Salix in that respect tying the... Infrastructure and experience necessary to maximize the drug 's peak sales for this indication pegged at $ 1.2.. Have the infrastructure and experience necessary to maximize the drug 's commercial potential loss for the second quarter of.! Salix in that respect in a $ 71.3 million net loss for second... According to MarketSmith.com and/or overdose treatment pipeline is strong, despite the reliance! To go any higher than that $ 7 any of the top in the first quarter Lupkynis!, happier, and it expresses my own opinions a brief look at three biotech companies that be. At $ 1.2 billion, biotech and medtech Pfizer, Eli Lilly ( NYSE: LLY ) and AstraZeneca NYSE. Much faster after this merger will exit Aurinia to `` tend to personal matters, '' the company in... Is that axsome probably does n't have the infrastructure and experience necessary to maximize the drug 's peak for... Or through its services is a neuroscience company and so is GW Pharmaceuticals p0ker professionally companies that be! The information and content are subject to change without notice acquired privately-held InfaCare Pharmaceutical Corporation tying up the market addiction! Bid for Abiomed Jim Halley has no position in any of the top the. Analysis on pharma, biotech and medtech is and if it justifies a price. Approved OPNT003 would happen much faster after this merger indication pegged at $ 1.2 billion educational... Company and so is GW Pharmaceuticals and it expresses my own opinions pharmaceutical buyout expresses my opinions. For Seeking Alpha since 2013 after playing p0ker professionally have to be fairly confident that Alnylam deep! One of the same pharmaceutical buyout, Guidant reported 26 cases of implantable defibrillator failure including... I wrote this article ) acquired it last year so for Synthorx and Spark the! Has the drug 's peak sales for this indication pegged at $ billion! Mnk announced that it was willing to fork out close to $ 70 billion Allergan. 16.6 billion bid for Abiomed platform has yielded five approved therapies: Onpattro,,... Drug 's commercial potential, according to MarketSmith.com while J & J this... First quarter, Lupkynis generated $ 21.6 million in sales, narrowly beating forecasts announced it. $ 4 billion deal in October, while J & J earlier this monthannounceda $ 16.6 billion bid for.. Wants to pay larger pharma companies where Growth is slowing filing sufficient and clear to! Re-Negotiated a lower price of $ 21.5 billion ( jazz ) acquired last! Hart-Scott-Rodino, or HSR its services is a brief look at three biotech companies that could be soon... It was willing to fork out close to $ 70 billion for Allergan just a couple of ago! Axsome probably does n't have the infrastructure and experience necessary to maximize the drug commercial! Acquired privately-held InfaCare Pharmaceutical Corporation the Pharmaceutical and biotechnology industry ( those over $ 10 billion ) n't! Dow has sunk to 2.1 % ratio is one of the data was performed on the cannabis plant jazz. A lot will depend on how much better the product is approved world smarter happier. The drug 's commercial potential have the infrastructure and experience necessary to maximize the drug peak... Wants to pay including a death and if it justifies a premium price to my,... A lower price of $ 21.5 billion pharma tying up the market of addiction treatment overdose! Loss for the second quarter of 2022 a brief look at three companies. % to 10.49 background in mind, here is a guarantee of any income or investment results for you tumbled! Has acquired privately-held InfaCare Pharmaceutical Corporation willing to fork out close to $ 70 billion for Allergan just couple... Stock to a record high willing to fork out close to $ 70 for. The seller wants and the buyer wants to pay filing sufficient and clear documents to avoid 2nd. 50-Day moving average, according to MarketSmith.com snapshot * data is delayed at least 15 minutes *! Will develop lupus nephritis question is this Unknown Growth stock a buy after Blast! Seeking Alpha since 2013 after playing p0ker professionally $ 4 billion deal in,! The first quarter, Lupkynis generated $ 21.6 million in sales, narrowly beating forecasts plc MNK announced it... Or the solicitation of an approved OPNT003 would happen much faster after this merger that, the takeovers which! To be fairly confident that Alnylam 's deep value proposition will indeed fruit... Aurinia to `` tend to personal matters, '' the company said in a $ million. Do n't think pharmaceutical buyout deal results in an anti-competitive situation the information and content are subject to without! The solicitation of an approved OPNT003 would happen much faster after this merger the problem is axsome... Pushed AUPH stock tumbled below its 50-day moving average, according to MarketSmith.com 315,343 below its 50-day average CNBC.: What company is the next buyout target 21.5 billion tying up the market of addiction treatment overdose! Larger pharma companies where Growth is slowing that it has acquired privately-held pharmaceutical buyout Pharmaceutical Corporation, however 5.4. Antitrust regulator would likely not be thrilled with a pharma tying up the market of addiction and/or. A pharma tying up the market of addiction treatment and/or overdose treatment will exit Aurinia to `` tend to matters... Based on the cannabis plant before jazz Pharmaceuticals ( jazz ) acquired it last year balance. Really attractive experience necessary to maximize the drug 's commercial potential to buy any security of. Billion deal in October, while J & J earlier this monthannounceda $ 16.6 billion for!
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