Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals - Q1 2012

Additional Information

Values Of Pharmaceutical & Healthcare Deals Were Down 34% In Q1 2012.

GlobalData's “Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals - Q1 2012” report is an essential source of data and trend analysis on partnerships, licensing, mergers and acquisitions (M&A) and financing in the pharmaceutical and healthcare market. The report provides detailed information on partnerships, licensing agreements, M&As, equity/debt offerings, private equity and venture financing transactions registered in the pharmaceutical and healthcare industry in Q1 2012. The report presents detailed comparative data on the number of deals and their value in the past five quarters subdivided into deal types, segments, and geographies. The report also offers information on the top venture capital and advisory firms in the pharmaceutical and healthcare industry.

GlobalData derived the data presented in this report from proprietary in-house Pharma eTrack deals database and through primary and secondary research.

Pharmaceutical And Healthcare Industry Reported A Decrease In M&A Activity In Q1 2012

M&A deals, including asset purchases, reported a decrease in the number of deals and deal values in Q1 2012. The segment recorded 214 deals worth $15.4 billion, as compared to 254 deals worth $26.1 billion in Q4 2011. On a year-on-year basis, the deal activity decreased in Q1 2012, when compared to 321 deals worth $28.1 billion in Q1 2011.

The oncology therapeutics market accounted for the majority of M&As during Q1 2012. The market recorded 17 deals worth $5.3 billion in Q4 2011. Central nervous system therapeutics market was in second place with 15 deals worth $1.8 billion.

Some of the high value deals in Q1 2012 include, Dainippon Sumitomo Pharma announcing to acquire Boston Biomedical Inc. (BBI), a biotechnology company, for approximately $2.6 billion; Bristol-Myers Squibb’s acquisition of Inhibitex, Inc., a biotechnology company, for a purchase consideration of approximately $2.5 billion and Amgen completing the tender offer to acquire all the outstanding shares of Micromet, Inc., a biotechnology company, for a cash consideration of $1.16 billion.

According to Khaleeq Zakariya, analyst at GlobalData, “Global merger and acquisition (M&A) activity in the pharmaceutical and healthcare industry witnessed a slow start in the first quarter of 2012, compared with the last three quarters of 2011, and was low compared to the same period in 2011. This suggests that economic uncertainty in the global market remains. North America has recorded a steep decline in both deal values and deal volume between the fourth quarter of 2011 and the first quarter of 2012 and Europe also witnessed a decrease in the number of deals and deal values in first quarter of 2012 as compared to fourth quarter of 2011. All other world markets, including Asia-Pacific saw the number of deals rise in the first quarter of 2012 over the fourth quarter of 2011 but saw the deal values decrease over that same period.”

Partnership Deals Decline Marginally In Q1 2012

Partnership deals reported a decline in the number of deals and deal values in Q1 2012 with 175 deals worth $4.3 billion, as compared to 179 deals worth $4.8 billion in Q4 2011. On a year-on-year basis, the number of deals and deal values decreased in Q1 2012, when compared to 268 deals worth $6.6 billion in Q1 2011. Out of 175 deals reported in Q1 2012, 109 were co-development deals, 31 were co-marketing deals, 23 were joint venture deals and 12 were related to other category.

Abbott Laboratories collaboration agreement worth $1.2 billion with Galapagos, to develop and commercialize GLPG0634, an oral JAK1 inhibitor in Phase II development with the potential to treat multiple autoimmune diseases, was one the major partnership transaction reported in Q1 2012.

Number Of Licensing Agreement Increase In Q1 2012

Licensing agreements recorded an increase in the number of deals with 134 deals in Q1 2012, as compared to 115 deals in Q4 2011. However, dollar value of licensing deals declined reporting $2.8 billion in Q1 2012, as compared 4.3 billion in Q4 2011. On a year-on-year basis, the number of deals and deal values decreased in Q1 2012, when compared with 162 deals worth $5.5 billion in Q1 2011.

In licensing by phase, products in Phase III recorded 89 deals, accounting for 23% of the total deals in last five quarters. In second place, products in Phase II accounted for 21% of the deals. In deal values, Phase III products accounted for 29% of the deal value.

Xenon Pharmaceuticals’ licensing agreement with Genentech to discover and develop compounds and companion diagnostics for the potential treatment of pain, ThromboGenics’ licensing agreement with Alcon for the commercialization of Ocriplasmin outside the US for the treatment of symptomatic vitreomacular adhesion (VMA) and Enanta Pharmaceuticals’ licensing agreement with Novartis for EDP-239, were some of the notable licensing deals in Q1 2012.

VC Capital Investors Decrease Their Investments In Q1 2012

The pharmaceutical and healthcare industry recorded a decrease in deal values in Q1 2012 with $1.4 billion as compared to $1.8 billion in Q4 2011. However, the number of deals increased to 235 from 228 in Q4 2011. On a year-on-year basis, the number of deals increased and deal values decreased in Q1 2012, when compared to 165 deals worth $1.5 billion in Q1 2011. Out of 235 deals recorded in Q1 2012, 141 were start-up stage financing deals worth $861.8m, 59 were growth/ expansion stage financing deals worth $350.9m, 18 seed stage financing deals worth $14.9m and 17 were later stage financing deals worth $201m.

According to Khaleeq Zakariya, analyst at GlobalData, “The global pharmaceutical and healthcare industry recorded an increase in number of venture capital deals and a decrease in deal values in first quarter of 2012 as compared to the fourth quarter of 2011, suggesting an on-going sense of caution among venture capitalists. However, start-up stage financing peaked in first quarter of 2012. Globally, the oncology therapeutics market recorded the highest number of venture capital deals, followed by the central nervous system and immunology therapeutics market during the first quarter of 2011 to first quarter of 2012”.

Number Of Deals Increase In North America In Q1 2012

North America recorded an increase in the number of deals and a sharp decrease in deal values in Q1 2012. The region registered 702 deals worth $34.7 billion in Q1 2012, as compared to 693 deals worth $61.9 billion in Q4 2011. On a year-on-year basis, the number of deals and deal values decreased in Q1 2012, when compared to 764 deals worth $44.8 billion in Q1 2011.

Europe recorded a decrease in the number of deals and an increase in deal values in Q1 2012 with 233 deals worth $12.7 billion, as compared to 244 deals worth $12 billion in Q4 2011. On a year-on-year basis, the number of deals and the deal values decreased in Q1 2012, when compared to 339 deals worth $33.4 billion in Q1 2011.

Asia Pacific recorded a decline in the number of deals and deal values in Q1 2012. The region reported 204 deals worth $8.2 billion in Q1 2012, as compared to 213 deals worth $11.7 billion in Q4 2011. On a year-on-year basis, the number of deals and the deal values decreased in Q1 2012, when compared to 251 deals worth $15.2 billion in Q1 2011.