Merck, under outgoing CEO Ken Frazierand now retired research chief Roger Perlmutter, has stayed away from large-scale dealmaking. Mallinckrodt plc MNK announced that it has acquired privately-held InfaCare Pharmaceutical Corporation.. You should perform The company currently sports two FDA-approved therapies: Sunosi for excessive daytime sleepiness due to narcolepsy and Auvelity for major depressive disorder. Bayer initially opened negotiations with an offer of $125 per Monsanto share, however management felt this undervalued the company. If the sales targets are then achieved in a sequence of 4 quarters within the next seven years, the corresponding milestones are due. Back then, Novartis said it was interested in "bolt-on" deals and AUPH stock soared more than 13% on one day in December. After all, the richest deals in this space have generally come in at around six to eight times peak estimated revenue. In 2013, industry-watchers speculated that Endo could be a Valeant buyout target. The company hired Volker Crackdown on Inversions", "Pfizer, Allergan Agree to End $160 Billion Deal", "M&A Boom Implodes, US Deal Failures in 2016 Worst Ever", "AstraZeneca rejects Pfizer's final 69bn takeover bid", "Pfizer chases AstraZeneca for potential $100 billion deal", "Warner-Lambert rejects Pfizer's bid - Nov. 4, 1999", "Pfizer Makes Bid for Warner-Lambert (washingtonpost.com)", "WARNER-LAMBERT GETS PFIZER OFFER FOR $82.4 BILLION", "Warner Lambert. Boosting this years average are takeovers from Nestle and Alexion, of Aimmune and Portola respectively, deals that rank among the five richest across all the years in this analysis. Most Trusted Financial Companies Take A Survey And Win A $50 Amazon Gift Card. This list is incomplete, you can help by expanding it. The turning point for Merck came in January, when Pandion shared Phase 1 study results for PT-101 with it and four other companies. Almost all of Indivior's assets are focused on treating addiction. Here's the Stock to Buy Now, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. 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. 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. The documents made public Thursday show the price point was largely the result of Pandion'snegotiating for more money. In early February, Merck proposed a buyout at a price of $40 per share, which it revised two days later to $50 per share. However, we know of one group of investors collecting up to $550 every 30 daysfrom a little-known investment that yields a whopping 12%! This happens a lot when pharma or biotech companies with important unapproved assets get bought. It is worth pointing out that Gileads $21bn move on Immunomedics this year was struck at a 111% premium; it is extremely rare to see premiums move into triple figures for transactions of this size. Hikma Pharmaceuticals PLC closed 4.32 short of its 52-week high (21.37), which the company reached on March 25. The suit was filed just before Christmas in a federal court in Waco, Texas. Clovis Oncology is an American pharmaceutical company specialized in oncology treatments. The core concept behind RNAi is to silence genes associated with human disease. The biggest premium paid over the period was actually for Tobira, which Allergan bought for $1.7bn in 2016, at a 1,532% 30-day premium; however, this has been excluded as an outlier. 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. And in the meantime, buying back its own shares something thats unusual for smaller pharma companies but not a negative in this case. Informations sur votre appareil et sur votre connexion Internet, y compris votre adresseIP, Navigation et recherche lors de lutilisation des sites Web et applications Yahoo. Treatments for overdoses (Opiant pharmaceuticals). The Jazz product pipeline is strong, despite the current reliance on Xyrem. But takeover talk has largely cooled down since late last year. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Making the world smarter, happier, and richer. It had been sitting on a floor at that line for most of this month. 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. After a protracted court battle with Valeant, The two companies had agreed to a $54 billion deal that would allow AbbVie to move its headquarters overseas to Europe, reducing their corporate tax rate. Slectionnez Grer les paramtres pour grer vos prfrences. Semafor is planning to buy out FTX founder Sam Bankman-Fried's roughly $10 million investment in the news startup, the New York Times reported on Wednesday, citing the company's chief executive officer. 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. GW developed a treatment for seizures based on the cannabis plant before Jazz Pharmaceuticals (JAZZ) acquired it last year. 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 acquisitions. The Motley Fool has no position in any of the stocks mentioned. That's an enormous premium, to put it mildly. The company has remained resilient during the M&A boom in pharma, refraining from making reckless. Monsanto weighed $40 billion unsolicited bid for Swiss rival, Syngenta aiming to avoid US corporation taxes. I gravitate towards special-situations. Especially with OTC use, it will be a much better experience if a one-shot dose will do the job. Jazz bought the Xyrem brand back in 2005 when it bought Orphan Medical. And Merck is rumored to be in advanced talks to buy the cancer specialist Seagen. Artificial Intelligence in Digital Pathology Diagnostics: What Do Physicians Know and Expect? The three firms have been active in deal-making this year. The combination with Opiant will provide Indivior with one of the most comprehensive and relevant treatment platforms to address the ongoing U.S. opioid and overdose epidemic and extends our leadership position in addiction treatments. I am not receiving compensation for it (other than from Seeking Alpha). Already this month, weve seen two multi-billion-dollar pharma buyouts. 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. Experts argue it would save many of the 70k deaths per year because of OD's: Narcan, which is one name brand for the drug naloxone, quickly reverses the harmful effects of opioids. We are dedicated to developing life-changing medicines for people with serious diseases often with limited or no therapeutic options. 2000-2023 Investor's Business Daily, LLC. The bottom line is that Karuna is unlikely to remain independent leading into KarXT's upcoming regulatory filing in mid-2023. Why Alnylam Pharmaceuticals Stock Is Vaulting Higher Today. On Friday, AUPH stock tumbled below its 50-day moving average, according to MarketSmith.com. Six times BIGGER Dividends with this one stock. Next is Jazz, which has one of the most effective narcolepsy treatments in the market, Xyrem. $2.00 per CVR upon achievement of net sales of OPNT003 of $325 million or more during any period of four consecutive quarters prior to the seventh anniversary of the U.S. commercial launch of OPNT003. 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 Learn how to trade stocks like a pro with just 3 email lessons! Compliance. That provides a good short-term opportunity for investors. In truth, many of the major pharma companies might need to buy some growth. Third bid, unanimously rejected by the Shire Board, who concluded that it significantly undervalue the Company, its growth prospects as well as pipeline. The company is also applying to the FDA to get Narcan approved for OTC sale. 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. This has been avoided, but the refining was done on January the 3rd, so it takes at least until February the 3rd before HSR runs out. *Average returns of all recommendations since inception. Perlmutter's planned retirement was announced a few days later, on Oct. 2, but Merck moved forward with a revised proposal for a 50-50 partnership on the research work behind PT-101 and a nearly 20% stake in Pandion. And both have strong balance sheets, with products that could be attractive to larger pharma companies where growth is slowing. of your investment. To make the world smarter, happier, and richer. Amgen acquired ChemoCentryx in a $4 billion deal in October, while J&J earlier this month announced a $16.6 billion bid for Abiomed. It is not my favorite merger with CVR because of 1) the HSR refiling, 2) OPNT003 isn't approved yet, and 3) I'm not quite sure how much better the product will be compared to the incumbent 4) It also appears Narcan has some branding power which means it may take time to acquire market share even if the product is solid. And despite the Salix buy, Valeant still has plenty of firepower. Innovation in biotech will continue to be rewarded. It has also estimated more than $1.5 billion in peak U.S. annual sales of its second largest drug Krystexxa, used for the treatment of gout that is not controlled by other medicines. Jazz also has a strong balance sheet, with less than $800 million in net debt (debt less cash). 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. Why is Alnylam a possible takeover target? 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. EBS projects nasal naloxone product sales within $350mm$365mm. Horizon, which makes drugs for rare, autoimmune and severe inflammatory diseases, however, added there can be no certainty that any offer will be made. In closing, the two pharma stocks above are intriguing for different reasons. Clovis leading drug Rubraca (rucaparib), a poly (ADP-ribose) polymerase (PARP) inhibitor, has been approved by the FDA for the treatment of ovarian and prostate cancer. AstraZeneca claimed the deal undervalued the company. 1/17/2023 February started off with. About half of adults with lupus will develop lupus nephritis. The same applies for Vitae, Aimmune and Portola, the buyouts of which were all triggered by a substantial erosion in value. That same day, Pandion made a counter-offer of $60 per share that Merck later agreed to following additional due diligence and inspections of contract manufacturers used by Pandion. 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. I love to get a CVR during a takeover process. The ultimate proposal was more than double Pandion's closing stock price a day before the deal, and three-and-a-half times higher than the biotech's initial public offering price last July. The eventual purchase price would be more than $66 billion. And following the big news about Aphria and Tilray combining their companies, there's a new deal that's making waves in the cannabis sector. 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. If KarXT's other indications, such as Alzheimer's disease psychosis, pan out, the drug is predicted to generate over $5 billion in annual sales at peak, putting it in the running to possibly hit megablockbuster status one day. your financial adviser and does not provide any individualized investment advice to you. 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. I am not receiving compensation for it (other than from Seeking Alpha). A lot will depend on how much better the product is and if it justifies a premium price. 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. Readers are San Diego-based ACADIA Pharmaceuticals Inc. is focused on the development and commercialization of small molecule drugs that address unmet medical needs in central And in the meantime, buying back its own shares something thats unusual for smaller pharma companies but not a negative in this case. Valuations across the industry have fallen drastically over the past 10 months. Got a confidential news tip? Jazz Pharmaceuticals plc (NASDAQ: JAZZ) is a global biopharmaceutical company whose purpose is to innovate to transform the lives of patients and their families. Thats roughly six times bigger than the average yield of the Dow. your own independent research on potential investments and consult with your financial adviser to determine Despite all its growth, GW Pharmaceuticals is still losing money. With this background in mind, here is a brief look at three biotech companies that could be acquired soon. I've been writing for Seeking Alpha since 2013 after playing p0ker professionally. The Elite Pharmaceuticals Inc stock price gained 2.39% on the last trading day (Friday, 13th Jan 2023), rising from $0.0293 to $0.0300.During the last trading day the stock fluctuated 4.90% from a day low at $0.0286 to a day high of $0.0300.The price has been going up and down for this period, and there has been a 5.26% gain for the last 2 weeks. KarXT's clinical trial data, thus far, appears to set it apart from the crowd on these two key points. 1 Potential Buyout Candidate: Endo International (NASDAQ: ENDP) Endo just completed the $2.6 billion buyout of Auxilium Pharmaceuticals, which has two branded Aurinia Pharmaceuticals $AUPH Stock Up On Buyout Rumors January 21, 2022 Analysts Activity / Biotechnology 5 mins read Get Email Alerts and Follow Us: Buyout rumors AUPH Stock Collapses On Offering AUPH stock touched a record at 33.97 on Nov. 3 amid investor enthusiasm for a potential buyout. You take these, so you don't use/abuse substances. As the company investigates therapy possibilities for the drug, that number is likely to take off. 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. Pandion refused and continued discussions with another company that showed interest, but never progressed to making an offer. at $20.21, meaning you only pay $0.21 for the option to receive up to $8 in the coming years. Is This Unknown Growth Stock a Buy After Its Blast Off? That's if we simplify the situation to assume the merger closes. Hypothetical or modeled portfolio results do not represent the results of an actually 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. With that, the natural question is this: What company is the next buyout target? The Opiant assets are aimed at patients that have overdosed. Opiant Pharmaceuticals, Inc. ( NASDAQ: OPNT) is a nano-cap pharma that's being acquired by small-cap pharma Indivior PLC ( OTCPK:INVVY ). On Wednesday, Jazz Pharmaceuticals (JAZZ 0.26%) announced it's buying GW Pharmaceuticals (GWPH) for $7.2 million. Their prospects for a buyout are strong, but look for both to continue innovating whether a suitor comes or not. SAN DIEGO, January 17, 2023--SFJ Pharmaceuticals ("SFJ" or the "company") today announced the closing of the sale and transfer of assets related to Bentracimab from Alnylam Pharmaceuticals (ALNY -0.81%) is a ribonucleic acid interference, or RNAi, drug development specialist. Opiant's primary asset is OPNT003 and Indivior probably wanted to take it out before the PDUFA date. Before that, reports said Bristol Myers could be negotiating a deal. Yahoo fa parte della famiglia di brand di Yahoo. The Motley Fool has a disclosure policy. Speaking to this point, Pfizer recently doled out $5.4 billion to acquire Global Blood Therapeutics for its sickle cell disease assets. 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. An antitrust regulator would likely not be thrilled with a pharma tying up the market of addiction treatment and/or overdose treatment. Ownership data provided by Refinitiv and Estimates data provided by FactSet. Sanofi earlier this year completed the In fact, Endos CEO, Rajiv De Silva, was previously the COO of Valeant. The Motley Fool has positions in and recommends Alnylam Pharmaceuticals, Axsome Therapeutics, Merck & Co., and Seagen Inc. 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 BREAKING: Another Tech Giant Plans Massive Layoffs. The company has said it will announce its fourth-quarter numbers this month, but in a preliminary report on Jan. 11, said it made $148 million in the fourth quarter, up 35.7% over the same period in 2019. Please be aware of the risks associated with these stocks. My roots are in the value school but over time I've learned to respect different approaches. whether an investment is appropriate given your financial needs, objectives, and risk appetite. Essentially, Epidiolex is a purified form of a CBD, but without tetrahydrocannabinol (THC), the hallucinogenic ingredient of the plant. Second bid, unanimously rejected by the Shire Board, who concluded that it significantly undervalue the Company, its growth prospects as well as pipeline. Learn how you can make more money with IBD's investing tools, top-performing stock lists, and educational content. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Make more money in stocks with 2 months of access to IBD Digital for only $20! The huge sums of money flowing into drug development, and the resulting surge in valuations, has meant only one thing for industry buyers: soaring price tags. We look forward to working with Opiant's talented team as we undertake our shared mission of changing patients' lives through access to life-transforming treatment for substance use disorders.". 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. Thats just sad. That means situations around companies or the market where the price can move in a certain direction based on a specific event or ongoing event. Trading in securities involves risks, including the risk of losing some or all On today's stock market, AUPH stock toppled 9.4% to 10.49. However, Jazz's stock immediately took a small hit with the announcement, as is typical when one company buys another. Making the world smarter, happier, and richer. Axsome is also developing a late-stage migraine candidate called AXS-07, along with a fibromyalgia candidate called AXS-14. 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. The deal was announced Feb. 25 and the companies expect it to be completed by June. On this Wikipedia the language links are at the top of the page across from the article title. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. Denali could be attractive buyout target for Takeda Pharmaceutical Co. Ltd., its partner in a 2018 neurodegenerative disease collaboration. This is largely because cash is easy to raise, from public and private investors alike, leaving sellers with little incentive to negotiate anything other than gold-plated terms. There are 36 U.S. states where medical marijuana is legal, so it seems obvious that medical-use cannabis has a huge upside. Join the only newsletter featuring insights, ideas, and recommendations from En cliquant sur Refuser tout, vous refusez tous les cookies non essentiels et technologies similaires, mais Yahoo continuera utiliser les cookies essentiels et des technologies similaires. A Division of NBCUniversal. Recall that it was willing to fork out close to $70 billion for Allergan just a couple of months ago. 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. Members of Special Situation Report get exclusive access to our subscriber-only portfolios. There's a special meeting of stockholders on March 1, and I'd expect the deal to close out soon after, provided HSR runs out without any issues. All Rights Reserved. The oral spray, which contains both CBD and THC, is already approved in the U.K. as a therapy for various multiple sclerosis (MS) symptoms, especially MS-related spasticity (muscle spasms or stiffness). Trading volume (490,598) remained 315,343 below its 50-day average En cliquant sur Accepter tout, vous acceptez que Yahoo et nos partenaires traitent vos informations personnelles et utilisent des technologies telles que les cookies pour afficher des publicits et des contenus personnaliss, et des fins de mesure des publicits et des contenus, dtude des audiences et de dveloppement de produit. It is a deal where I can imagine antitrust authorities would be hesitant to let it pass if they felt they didn't have enough information. If you can get them cheap enough, they can be really attractive. Knappertz will head up Aurinia's research and development. The chart below calculates this from the targets average share price over the 30 days before a deal was announced. But the pharma has proven an enthusiastic acquirer of early-stage, smaller companies, buying up seven private and public biotechsover the past two years. 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. 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. 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. Cost basis and return based on previous market day close. By using this site, you agree that we may store and access cookies on your device. Pour en savoir plus sur notre utilisation de vos informations, veuillez consulter notre Politique relative la vie prive et notre Politique en matire de cookies. A 2nd request means the antitrust authorities would look into the deal more profoundly, and it means things take a lot longer. However they later re-negotiated a lower price of $21.5 billion. 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. Investors expect another lackluster year in IPOs, while company restructurings look set to continue as biotech executives try to conserve cash. What Will Make Miners Reclaim Their Luster? I wrote this article myself, and it expresses my own opinions. Jazz's focus on oncology and sleep disorder could also be helped by GW Pharmaceutical's cannabis expertise. 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. 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 Meanwhile, many large drug developers are in need of pipeline infusions. Opiant Pharmaceuticals, Inc. (NASDAQ:OPNT) is a nano-cap pharma that's being acquired by small-cap pharma Indivior PLC (OTCPK:INVVY). Learn More. Learn More. 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. The problem is that Axsome probably doesn't have the infrastructure and experience necessary to maximize the drug's commercial potential. I have no business relationship with any company whose stock is mentioned in this article. [See Deal] Also, companies in the neurology 1/17/2023 The hirings likely cooled investors' expectations that Aurinia could be looking for a buyout. "We are planning to repurchase Sam Bankman-Fried's interest in Semafor and to place the money into a separate account until the relevant legal authorities Affimed Therapeutics. 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. Indivior is laying out $20 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. Nous, Yahoo, faisons partie de la famille de marques Yahoo. Alnylam's Strategy Is Getting Bigger. click here for our full report on this opportunity. 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. The push included direct pressure from Pfizer partner BioNTech to censor activists demanding low-cost generic vaccines for low-income countries, Fang wrote. With the lower re-negotiated a lower price of $21.5 billion between Johnson & Johnson and Guidant, Boston Scientific announced an unsolicited offer of $24.6 billion for Guidant (an offer of $72 per share of Guidant, $36 in cash and a fixed number of Boston Scientific shares valued at $36 a share). 8 Meme Stocks Are Soaring Again (AMC And GameStop Aren't On Top), Oil Giant Exxon Fuels Buy Point With 159% EPS Growth On Tap. 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. February started off with Pfizer (NYSE: PFE) buying up Hospira (NYSE: HSP) for $15 billion. It works fast. Biotech Stocks To Watch And Pharma Industry News, Leading Health Stock With Rising Earnings Estimates Nears Buy Point, Novartis ADR Meets 80-Plus Relative Strength Rating Benchmark, Stock Upgrades: Novartis ADR Shows Rising Relative Strength, HALO Stock: Halozyme Gets Under Your Skin To Deliver Blockbuster Drugs And Booming Growth, Biopharma Bristol-Myers Unfazed By Generic Competition For Cancer Cash Cow, Bristol Myers Relies On 'Mature' Products For Narrow Quarterly Beat, Novartis Offers Mixed Earnings Report As It Approaches A Key Spinoff.