Pharmaceutical megamergers continue to dominate: Analysis of Q1 activities
In the first quarter of 2019, the pharmaceutical industry witnessed a significant shift with several major mergers and acquisitions (M&A) taking place. According to Cortellis Deals Intelligence, a division of Clarivate Analytics, M&A activity saw a 24% increase compared to the previous quarter. However, the total disclosed deal value for Q1 2019 was $119.2 billion, a 9% decrease from the previous year.
One of the most notable acquisitions was Eli Lilly's $8 billion purchase of Loxo Oncology. Loxo Oncology's lead asset, larotrectinib sulfate, is a tropomyosin receptor kinase inhibitor recently approved in the U.S. for the treatment of solid tumors. Bayer also exercised an option for exclusive U.S. commercialization rights as part of a $1.6 billion license with Loxo Oncology. LOXO-292 (selpercatinib), a RET inhibitor developed by Loxo Oncology, has shown promising clinical progression in phase I/II trials.
In the realm of genetic diseases, Bristol-Myers Squibb (BMS) made a $74 billion approach for Celgene, while Roche aimed to boost its growth in this area by acquiring Spark Therapeutics for $4.8 billion. Spark Therapeutics' only launched product, voretigene neparvovec (Luxturna), is an intraocularly injected AAV that delivers the RPE65 gene. According to Cortellis Competitive Intelligence, Luxturna is forecast to obtain billion-dollar revenue status in 2024.
M&A activity was low across Asia-Pacific regions this quarter, with Japan announcing three M&A type deals worth $86.1 million, and China having $36.6 million. The few announced deals in the region focused on manufacturing capabilities, with firms in both China and Japan targeting organizations with established antibody manufacturing technologies and facilities.
However, specific details about companies conducting M&A transactions in the Asia-Pacific region in Q1 2019 or the deal volumes for that period are not available in the available sources.
In the oncology sector, Lenalidomide, a drug widely available for myelodysplastic syndrome with 5q deletion chromosomal abnormalities and multiple myeloma, generated $9.6 billion in sales in 2018 and is expected to reach $13.3 billion in 2021.
BMS identified synergies across its pipeline with Celgene in the areas of oncology, immunity, and inflammation. Discussions between BMS and Celgene regarding the proposed acquisition remain ongoing.
With these acquisitions and strategic moves, the pharmaceutical industry is set to undergo significant changes in the coming years, particularly in the areas of oncology and genetic diseases.
