Deals Of The Week: How Do 2013 Biotech Deal Stats Stack Up After Amgen/Onyx?
A busy summer of biotech acquisitions, including the pricey buyouts of Onyx by Amgen and Elan by Perrigo, has lifted the number of U.S. public biotech acquisitions so far in 2013 – and increased the average value of those deals. In other deal news, Endo plans to acquire Boca Pharmacal, Medimmune will buy out Amplimmune, and Eli Lilly signed a diabetes research deal with Zealand Pharma.
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The addition of Onyx’s cancer drugs to Amgen’s portfolio will fill a near-term sales gap for the big biotech and reinforce the company as a major oncology player. But Amgen will need to execute expertly on the merger if it is to transform itself into a high-growth biotech.
The biotech will bolster its own internal programs, as well as gain a potentially lucrative mid-stage asset through the acquisition, with no effect on its own balance sheet.
CEO Raj Rai calls the transaction a “transformative event” for Akorn that will be instantly accretive and produce between $15 million and $20 million of run-rate synergies within 12 months. Acquisition of Hi-Tech adds prescription and OTC products, 18 filed ANDAs and increased manufacturing capability.