Welcome to Zymewire’s newest blog series, Flagged Events: M&A, where we will be recapping some of the latest mergers & acquisition activities across pharma for the month. Needless to say, it’s been a busy few weeks to kick off the new year!
Late in the month, Aldeyra Therapeutics Inc. ($ALDX) announced their acquisition of private biotech Helio Vision, bringing their Ph. 3 candidate for the treatment of proliferatie vitreoretinopathy (PVR). ADX 2191 previously received designation as an orphan drug.The addition will expand Aldeyra’s later stage ocular pipeline, and bolster their offerings that target immune-mediated indications.
The terms of the deal state that Helio will receive $10M in Aldeyra common shares initially, with a potential extra $2.5M in 2 years. Completion of regulatory milestones may earn them another $12.5M in stock.
CNS - Focused Biopharmaceutical company Seelos Therapeutics ($SEEL) announced the completion of its merger with Apricus Biosciences ($APRI) on January 24th 2019. The combined entity will operate under the name of Seelos Therapeutics Inc. and will continue to develop therapies against CNS indications with unmet needs. The merger will add Apricus’ 2 candidates, Vitaros and RayVa, to Seelos’ primarily preclinical pipeline.
Seelos’ HQ will remain in New York City, and their current CEO, Raj Mehra, will serve at the helm of the combined company. Seelos shareholders come away owning 85% of the company, with Apricus’ pre-merger shareholders owning the remaining approximate 15%.
British pharma and consumer health giant, GlaxoSmithKline ($GSK) purchased Waltham’s oncology focused TESARO ($TSRO) this month for a tidy $5.1B cash offer. The acquisition brings the marketed Zejula (niraparib) as well as TESARO's fair sized list of candidate programs into GSK’s oncology pipeline.
Combination and monotherapy treatments with niraparib are underway, testing the drug against populations with and without gBRCA mutations, with results expected later this year.
AMAG ($AMAG) announced the completion of its acquisition of Perosphere Pharmaceuticals, bringing 2 preclinical candidate programs [Glucagon and Felbamate (PER726)] and clinical asset Ciraparantag (PER977). Currently in Phase II, Ciraparantag is being developed for the reversal of regular anticoagulant therapies when patients need emergency surgery, or have uncontrolled bleeding.
Under the terms of the deal, Perosphere shareholders will receive $50M from AMAG, and the purchasing company will also be assuming $18.2M of Perosphere’s liabilities ($12M term loan and $6.2M other liabilities).
Indianapolis’ Eli Lilly and Company ($LLY) announced their acquisition of Stamford’s Loxo Oncology ($LOXO). The commercial biopharma markets Vitrakvi (larotrectinib), which targets solid tumors testing positive for NTRK genes, independent of the type of cancer. Loxo’s burgeoning pipeline will slot nicely into Lilly’s oncology offerings, further strengthening the titan’s lineup.
Eli Lilly will purchase all outstanding shares of Loxo, to the tune of $8B in cash, becoming the largest deal in their recent series of acquisitions aimed at building out their oncology efforts.
Generex Biotechnology Corporation ($GNBT) had a big month, announcing four separate acquisitions. On January 7th, they announced the completion of their acquisition of Regentys Corporation for $400 000 upfront, and another $14.6M dependent on various milestones being reached. The purchase brings in Regentys’ Extracellular Matrix Hydrogel treatment for Ulcerative Collitis, with potential for targeting other gastrointestinal indications in the future.
Next, they closed the deal for 51% of New York’s Olaregen Therapeutix on a similarly structured deal as Regentys, with a $400 000 upfront payment and $11.6M for various milestones. Olaregen launched their first product, Excellagen, a syringe-based topical wound healing therapy, used to treat 17 wound types.
Generex also announced the acquisition of Pantheon Medical, an orthopedic surgical device manufacturer, and MediSource Partners, a surgical and medical product distributor. Both deals were for Generex stock as well as additional stock and cash considerations for sales and profit projections.
However, it does not appear that Generex is done with their purchasing spree. They signed a letter of intent to acquire Fuse Medical ($FZMD), a Texas surgical supply company, pending the completion of due diligence. The all stock deal would be valued at $34M in all common stock.
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