Amgen spent $10.4bn (€7.8bn) this week on Onyx Pharmaceuticals, but AstraZeneca and Johnson & Johnson have also opened up their wallets this week – welcome to in-Pharmatechnologist.com’s merger & acquisition round-up.
Following the release of Onyx’ late stage trial data for its new cancer drug, Krypolis, Amgen announced it had come to an agreement to buy the firm ending months of speculation with, according to Reuters , the fifth largest biotechnology deal in history.
However, though the company described the purchase as an “excellent strategic fit,” Amgen is going to struggle to produce the cash, our sister publication Biopharma-Reporter.com reported today, having to take out $8.1bn in loans to pay for Onyx. Furthermore, according to some analyst reports the deal may lead to a 25% reduction in Onyx’s R&D and 50% of its SG&A.
With a much smaller price tag, Amplimmune was acquired by AstraZeneca’s US biologics division Medimmune earlier this week. The company paid $225m upfront for Amplimmune with a further $275m expected in milestone payments.
The deal is expected to bolster Medimmune’s biomanufacturing capabilities as well expanding its pipeline, Biopharma-Reporter.com also reported.
Last week US-headquartered firm Johnson & Johnson entered a definitive agreement to acquire Aragon Pharmaceuticals, for an upfront cash price of $650m which could be followed by an extra $350m depending on milestones.
The purchase includes Aragon’s lead candidate ARN-509, a second generation androgen receptor signaling inhibitor, currently in Phase II trials for prostate cancer.
In a statement Dr. Peter Lebowitz, Global Therapeutic Area Head of Oncology at J&J’s Janssen division, said: “The acquisition of Aragon further enhances our leadership in prostate cancer drug development. Prostate cancer is one of our main areas of focus, and we are pleased to be adding ARN-509 to our portfolio”
Though neither a merger nor an acquisition, Takeda Pharmaceuticals International – the Swiss subsidiary of Japan’s Takeda – expanded its reach along the Inca Trail by announcing it had launched a wholly-owned subsidiary in Peru.
“We have an established product portfolio, which will give us a strong starting point and we look forward to launching our novel medicines into the market,” said Takeda’s Senior VP, Latin America, Norbert Oppitz. “This investment further demonstrates our commitment to Latin America and its growth potential.”
Takeda already has a presence in Brazil, Mexico,Argentina, Venezuela, Colombia and Ecuador, and the company estimates pharma sales at $1.5bn for 2012, expected to grow by 8% during 2013, based on Market Prognosis Global 2012-2016.
And finally in this round-up, Thornton & Ross – a British OTC manufacturer located in Huddersfield – has been purchased for £221m ($343m) by German firm Stada Arzneimittel.
According to Stada, Thornton & Ross generated sales of £66m in the 2012/3 financial year, up 11% on the year prior, with its range of cold, pain and dermatology drugs.