Recap: Notable Life Sciences Merger & Acquisitions in Q3 2016

The mergers and acquisitions (M&A) activity in the Life Sciences sector in the third quarter of 2016 continued showing an important activity for both number of deals and financial value. In the previous three months, 124 active M&A deals were reported by Recap, from Clarivate Analytics, which represents a 4.2% increase from 119 deals in the second quarter, however, the total disclosed value decreased by 67% from $116.3 billion to $38.3 billion

Deal activity in 3rd Quarter from 2008 to 2016

In the third quarter of the year, Pfizer targeted Medivation, developer of blockbuster anti-prostate treatment Xtandi, which it shares with Astellas to bolster its immune-oncology portfolio. Johnson & Johnson improved its Vision Care operations with Abbott’s cataract eye surgery business. Other large M&As also follow: Pfizer to acquire anti-prostate Xtandi developer Medivation for $14 billion

The lucrative breast cancer market continues to show opportunity for growth as Medivation’s phase III breast cancer asset MDV-3800 (talazoparib) (acquired from BioMarin along with patent rights) attracted a bid from Pfizer. The developer of blockbuster anti-prostate treatment Xtandi (enzalutamide; around $2 billion in sales over the past year), which Medivation shares with Astellas, and phase II myeloma/lymphoma therapy MDV-9300 (pidilizumab) was acquired for approximately $14 billion within a month from announcement. The financial arrangement included $81.5 per Medivation share in cash for around 17 million shares. Pfizer sees the potential to combine Medivation’s assets with its own immune-oncology portfolio including widely available breast cancer treatment Ibrance (palbociclib). The parties have a historical relationship involving Huntington’s disease therapy Dimebon; the $725 million partnership terminating in 2012 following disappointing phase III results. The acquisition ended Sanofi’s numerously rejected bids for Medivation including $9.3 billion announced in April this year.

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