news 3/18/2010
The hottest tendency in the field of biomedical in 2009 is the merger between the large scale biomedical enterprises. The past leaders, Wyeth, Genentech and Schering-Plough were merged respectively by Pfizer, Roche and Merck & Co, which described the new prospect of regrouping medicine leaders in the first quarter in 2009. It 's a past that the pharmaceutical leader Novartis merged Alcon, the eye care company with an enormous amount of money in order for cost reduction and business development.
Compared with the mergers above mentioned, the transaction amount for the next six events is decreased obviously. Sanofi-aventis purchased Merial animal health co., Ltd. controlled by Merck & Co. And Richard T. Clark, the chairman, president and CEO of Merck & Co. said that the above transaction will push the merger between Merck & Co and Schering-Plough. GSK paid $3.6 billion to purchase Stiefel laboratories, a skin care company of US. Warner Chilcott paid $3.0 billion to purchase the business of prescription drug under Procter & Gamble Co 's.
The TOP 10 transaction for Biomedical in 2009 is listed as below:
1、Pfizer and Wyeth
Acquirer : Pfizer
Acquiree: Wyeth
Transaction value: $68 billion
Abstract: In early 2009, it was a major event in the field of biomedical that Pfizer bought Wyeth for $68 billion, also, it was the biggest merge for Pfizer since 2006. Jeffrey B. Kindler, Chairman and Chief Executive Officer of Pfizer, said: “The new Pfizer will have the industry 's best assets, personnel, product lines and power ”“The combination of Pfizer and Wyeth provides a powerful opportunity to transform our industry. It will produce the world 's premier biopharmaceutical company whose distinct blend of diversification, flexibility, and scale positions it for success in a dynamic global health care environment”. After merger, Pfizer owns a strong and growing product line in the field of bio-pharmaceutical development projects and can provide assistance to patients, including Alzheimer 's disease, cancer, pain, neuroscience, diabetes, and inflammation and other key areas. As Dr. Zhang Fabao, chairman of BioonGroup and expert of China Pharmaceutical Technology Organization Committee said during an interview by "Times", "Due to research facing dilemma, Pfizer appeared the embarrassment of lacking new products, it 's urgent for Pfizer to find a new benefit growth point after the patent expiration of Lipitor." The ultimate effect of this acquisition is right or wrong, we can really understand three years later.
Event Review: Pfizer bought Wyeth and consolidated the hegemony of global one.
2、Roche and Genentech
Acquirer : Roche
Acquiree: Genentech
Transaction value: $46.8 billion
Abstract: In March 2009, Genentech became a member of Roche family. Roche said the combined company would be the seventh largest pharmaceutical company by market value in U.S, the new company 's annual revenue will reach about $17 billion, and employees of U.S. will have reached 17.5 thousand. Holding the entire stock of Genentech by Roche will help Roche to cut costs, and the best-selling cancer drug of Genentech will significantly increase its revenue. Acquisition of Roche to Genentech will also ensure that Roche will gain Genentech laboratory after the current agreement will expire in 2015 (Data from BioInsight).
Event Review: Roche acquired Genentech for $46.8 billion
3、Merck & Co and Schering-Plough
Acquirer : Merck & Co
Acquiree: Schering-Plough
Transaction value: $41.1 billion
On March 9, 2009, Merck & Co agreed to acquire Schering-Plough Corp for about $41.1 billion in cash and stock. It is very different from a number of merge transaction due that the acquisition of the two companies is “ripe”, not for the purpose of cost-cutting.
Event Review: Roche announced to buy Schering-Plough Corp for $41.1 billion
4、Novartis and Alcon
Acquirer: : Novartis
Acquiree: Alcon
Transaction value: $28.1 billion
Novartis AG buy 52% stock of Alcon from Nestle for $28.1 billion and obtain the controlling interest to Alcon, so Novartis goes one step to the goal of becoming a global health care group. After completion of the transaction, stake of Alcon held by Novartis will be increased to 77%. Novartis is also bidding to buy the remaining stock of Alcon.
Event Review: Novartis AG buy 52% stock of Alcon from Nestle for $28.1 billion
5、Sanofi-Aventis
Acquirer: Sanofi-Aventis
Acquiree: Merial
Transaction value: $4.0 billion
Abstract: July 29, 2009, Sanofi-aventis and Merck & Co., Inc. signed the agreement on Sanofi-Aventis buy Merck & Co. 's interest in their animal health joint venture Merial Ltd. for $4 billion in cash. Sanofi-aventis can perform the option until the closing of the combination of Merck & Co. 's and Schering-Plough. Combining Merial and the Animal Health Division in Intervet/ Schering-Plough controlled by Merck & Co., Inc. to build a new joint venture company of animal health. Christopher A. Viehbacher, the CEO of Sanofi-aventis, said the acquisition strengthened the position of Sanofi-aventis in attractive animal health market and reflected the business of diversification development and the company strategy to become a leading pharmaceutical company with sustainable development and controllable risk in global market.
Event Review: Merial under Merck & Co., Inc. is acquired by Sanofi-aventis.
6、GSK and Stiefel
Acquirer: GlaxoSmithKline (GSK)
Acquiree: Stiefel Laboratories
Transaction value: $3.6 billion
Abstract: July 2009, GlaxoSmithKline (GSK) obtained the approval from European Commission and acquired Stiefel Laboratories for a cash consideration of $36 billion. The business of skin cream for GSK is increased to triple than before, and owns 8% share of global market for prescription drug and cosmetic. Meanwhile, GSK acquired the business of generic drug for Bristol-Myers Squibb in Lebanon, Jordan, Syria, Libya and Yemen market in July 2009 for a cash consideration of 1,420 million pounds (Equivalence to $2,320 million). The deal is another huge acquire action for GSK after GSK acquired the business of generic drug for Bristol-Myers Squibb in Africa in 2008. The acquisition further demonstrates the strategic objective of changing GSK to the leading manufacturer of brand generic drug in the developed country mentioned by Andrew Witty, the CEO of GSK (Data is from BioInsight).
Event Review: GlaxoSmithKline (GSK) obtained the approval from European Commission to acquire Stiefel Laboratories.
7、Warner Chilcott and Procter & Gamble Co 's
Acquirer: Warner Chilcott
Acquiree: The pharmaceutical department under Procter & Gamble Co 's
Transaction value: $3.1 billion
Abstract: Procter & Gamble Co 's abandoned its department of pharmaceutical business worthy of $2 billion in 2008. The products in the department are devoted to woman 's healthy, stomach upset and musculoskeletal disease. Due to the limited profit from the department, Procter & Gamble Co 's stopped the pharmaceutical development and hoped it can be take over by another company. After several months, Warner Chilcott agreed to pay $3.1 billion to buy the department, which is a good news for Procter & Gamble Co 's.
8、Bristol-Myers Squibb and Medarex
Acquirer: Bristol-Myers Squibb
Acquiree: Medarex
Transaction value: $2.4 billion
Abstract: U.S. drug maker Bristol-Myers Squibb Co (BMY.N) on Wednesday said it will pay $2.4 billion to acquire Medarex Inc MEDX.O, a biotechnology company that has been helping it develop a promising treatment for melanoma since 2005. James M. Cornelius, the present of BMY.N, is conducting the redundancy and outsourcing to reduce cost of $2.5 billion in three years. The company is ongoing acquisition and looking for a partner to make up the loss resulted from the marketing of the best-selling drug of Plavix in 2012.
9、GSK and Fiocruz
Transaction value: $2.2 billion
Abstract: The agreement for co-developing and co-manufacturing Dengue Vaccine is signed between GlaxoSmithKline (GSK) and Fiocruz in Brazil to resolve the imminent issues for public healthy. Based on the agreement, two above parties will establish a new cooperated project in Fiocruz to research Dengue Vaccine. GSK will provide Fiocruz with the technology of Synflorix Vaccine which belongs to 10-valent pneumococcal conjugate vaccine and is for pediatric patients. GSK will provide Synflorix Vaccine for Fiocruz till closing the technology transfer.
Event Review: The cooperation agreement for vaccine is signed between GlaxoSmithKline (GSK) and Fiocruz in Brazil.
10、Roche and PTC Therapeutics
Abstract: The agreement between Roche and PTC Therapeutics is the biggest agreement in the field of research and development in 2009. Before closing of the transaction for $12 million, PTC agreed using GEMS technology to build the gene expression profiling to help Roche develop 4 new drug products for the diseases of central nervous system. The agreement is composed of 4 phases. The charge for each phase is $239 million. Furthermore, PTC signed the agreement between Pfizer for a cash consideration of $1.2 billion, and had the cooperation with Schering-Plough. (Data is from BioInsight)
Compared with the mergers above mentioned, the transaction amount for the next six events is decreased obviously. Sanofi-aventis purchased Merial animal health co., Ltd. controlled by Merck & Co. And Richard T. Clark, the chairman, president and CEO of Merck & Co. said that the above transaction will push the merger between Merck & Co and Schering-Plough. GSK paid $3.6 billion to purchase Stiefel laboratories, a skin care company of US. Warner Chilcott paid $3.0 billion to purchase the business of prescription drug under Procter & Gamble Co 's.
The TOP 10 transaction for Biomedical in 2009 is listed as below:
1、Pfizer and Wyeth
Acquirer : Pfizer
Acquiree: Wyeth
Transaction value: $68 billion
Abstract: In early 2009, it was a major event in the field of biomedical that Pfizer bought Wyeth for $68 billion, also, it was the biggest merge for Pfizer since 2006. Jeffrey B. Kindler, Chairman and Chief Executive Officer of Pfizer, said: “The new Pfizer will have the industry 's best assets, personnel, product lines and power ”“The combination of Pfizer and Wyeth provides a powerful opportunity to transform our industry. It will produce the world 's premier biopharmaceutical company whose distinct blend of diversification, flexibility, and scale positions it for success in a dynamic global health care environment”. After merger, Pfizer owns a strong and growing product line in the field of bio-pharmaceutical development projects and can provide assistance to patients, including Alzheimer 's disease, cancer, pain, neuroscience, diabetes, and inflammation and other key areas. As Dr. Zhang Fabao, chairman of BioonGroup and expert of China Pharmaceutical Technology Organization Committee said during an interview by "Times", "Due to research facing dilemma, Pfizer appeared the embarrassment of lacking new products, it 's urgent for Pfizer to find a new benefit growth point after the patent expiration of Lipitor." The ultimate effect of this acquisition is right or wrong, we can really understand three years later.
Event Review: Pfizer bought Wyeth and consolidated the hegemony of global one.
2、Roche and Genentech
Acquirer : Roche
Acquiree: Genentech
Transaction value: $46.8 billion
Abstract: In March 2009, Genentech became a member of Roche family. Roche said the combined company would be the seventh largest pharmaceutical company by market value in U.S, the new company 's annual revenue will reach about $17 billion, and employees of U.S. will have reached 17.5 thousand. Holding the entire stock of Genentech by Roche will help Roche to cut costs, and the best-selling cancer drug of Genentech will significantly increase its revenue. Acquisition of Roche to Genentech will also ensure that Roche will gain Genentech laboratory after the current agreement will expire in 2015 (Data from BioInsight).
Event Review: Roche acquired Genentech for $46.8 billion
3、Merck & Co and Schering-Plough
Acquirer : Merck & Co
Acquiree: Schering-Plough
Transaction value: $41.1 billion
On March 9, 2009, Merck & Co agreed to acquire Schering-Plough Corp for about $41.1 billion in cash and stock. It is very different from a number of merge transaction due that the acquisition of the two companies is “ripe”, not for the purpose of cost-cutting.
Event Review: Roche announced to buy Schering-Plough Corp for $41.1 billion
4、Novartis and Alcon
Acquirer: : Novartis
Acquiree: Alcon
Transaction value: $28.1 billion
Novartis AG buy 52% stock of Alcon from Nestle for $28.1 billion and obtain the controlling interest to Alcon, so Novartis goes one step to the goal of becoming a global health care group. After completion of the transaction, stake of Alcon held by Novartis will be increased to 77%. Novartis is also bidding to buy the remaining stock of Alcon.
Event Review: Novartis AG buy 52% stock of Alcon from Nestle for $28.1 billion
5、Sanofi-Aventis
Acquirer: Sanofi-Aventis
Acquiree: Merial
Transaction value: $4.0 billion
Abstract: July 29, 2009, Sanofi-aventis and Merck & Co., Inc. signed the agreement on Sanofi-Aventis buy Merck & Co. 's interest in their animal health joint venture Merial Ltd. for $4 billion in cash. Sanofi-aventis can perform the option until the closing of the combination of Merck & Co. 's and Schering-Plough. Combining Merial and the Animal Health Division in Intervet/ Schering-Plough controlled by Merck & Co., Inc. to build a new joint venture company of animal health. Christopher A. Viehbacher, the CEO of Sanofi-aventis, said the acquisition strengthened the position of Sanofi-aventis in attractive animal health market and reflected the business of diversification development and the company strategy to become a leading pharmaceutical company with sustainable development and controllable risk in global market.
Event Review: Merial under Merck & Co., Inc. is acquired by Sanofi-aventis.
6、GSK and Stiefel
Acquirer: GlaxoSmithKline (GSK)
Acquiree: Stiefel Laboratories
Transaction value: $3.6 billion
Abstract: July 2009, GlaxoSmithKline (GSK) obtained the approval from European Commission and acquired Stiefel Laboratories for a cash consideration of $36 billion. The business of skin cream for GSK is increased to triple than before, and owns 8% share of global market for prescription drug and cosmetic. Meanwhile, GSK acquired the business of generic drug for Bristol-Myers Squibb in Lebanon, Jordan, Syria, Libya and Yemen market in July 2009 for a cash consideration of 1,420 million pounds (Equivalence to $2,320 million). The deal is another huge acquire action for GSK after GSK acquired the business of generic drug for Bristol-Myers Squibb in Africa in 2008. The acquisition further demonstrates the strategic objective of changing GSK to the leading manufacturer of brand generic drug in the developed country mentioned by Andrew Witty, the CEO of GSK (Data is from BioInsight).
Event Review: GlaxoSmithKline (GSK) obtained the approval from European Commission to acquire Stiefel Laboratories.
7、Warner Chilcott and Procter & Gamble Co 's
Acquirer: Warner Chilcott
Acquiree: The pharmaceutical department under Procter & Gamble Co 's
Transaction value: $3.1 billion
Abstract: Procter & Gamble Co 's abandoned its department of pharmaceutical business worthy of $2 billion in 2008. The products in the department are devoted to woman 's healthy, stomach upset and musculoskeletal disease. Due to the limited profit from the department, Procter & Gamble Co 's stopped the pharmaceutical development and hoped it can be take over by another company. After several months, Warner Chilcott agreed to pay $3.1 billion to buy the department, which is a good news for Procter & Gamble Co 's.
8、Bristol-Myers Squibb and Medarex
Acquirer: Bristol-Myers Squibb
Acquiree: Medarex
Transaction value: $2.4 billion
Abstract: U.S. drug maker Bristol-Myers Squibb Co (BMY.N) on Wednesday said it will pay $2.4 billion to acquire Medarex Inc MEDX.O, a biotechnology company that has been helping it develop a promising treatment for melanoma since 2005. James M. Cornelius, the present of BMY.N, is conducting the redundancy and outsourcing to reduce cost of $2.5 billion in three years. The company is ongoing acquisition and looking for a partner to make up the loss resulted from the marketing of the best-selling drug of Plavix in 2012.
9、GSK and Fiocruz
Transaction value: $2.2 billion
Abstract: The agreement for co-developing and co-manufacturing Dengue Vaccine is signed between GlaxoSmithKline (GSK) and Fiocruz in Brazil to resolve the imminent issues for public healthy. Based on the agreement, two above parties will establish a new cooperated project in Fiocruz to research Dengue Vaccine. GSK will provide Fiocruz with the technology of Synflorix Vaccine which belongs to 10-valent pneumococcal conjugate vaccine and is for pediatric patients. GSK will provide Synflorix Vaccine for Fiocruz till closing the technology transfer.
Event Review: The cooperation agreement for vaccine is signed between GlaxoSmithKline (GSK) and Fiocruz in Brazil.
10、Roche and PTC Therapeutics
Abstract: The agreement between Roche and PTC Therapeutics is the biggest agreement in the field of research and development in 2009. Before closing of the transaction for $12 million, PTC agreed using GEMS technology to build the gene expression profiling to help Roche develop 4 new drug products for the diseases of central nervous system. The agreement is composed of 4 phases. The charge for each phase is $239 million. Furthermore, PTC signed the agreement between Pfizer for a cash consideration of $1.2 billion, and had the cooperation with Schering-Plough. (Data is from BioInsight)
