Life Sciences Industry Propelled by Third-Quarter Mergers and Acquisitions
In the third quarter of 2018, the life sciences sector witnessed a flurry of mergers and acquisitions (M&As), with a total disclosed deal value of $16 billion, according to Cortellis Deals Intelligence. This article aims to provide an overview of some significant M&As that took place during this period, focusing on the Asia-Pacific region.
One of the most notable deals was Huadong Medicine's approach to U.K.-based aesthetics company, Sinclair Pharma, for a staggering $202 million. This move was part of a larger trend in the region, as Hong Kong, Singapore, Taiwan, and India also reported deals, although the values were not disclosed.
Japan-based companies led the way in the Asia-Pacific region, executing the highest number of deals. Otsuka's $430 million takeover of Visterra contributed significantly to the total disclosed value of $683 million. Other Japanese companies, such as Terumo, targeted Essen Technology Beijing for $138 million.
The largest M&A deals in Q3 focused on devices for musculoskeletal therapy. Mazor's X Robotic Guidance System (Mazor X) and K2M Group's spine and minimally invasive spine technologies were among the top acquisitions in this area.
Therapeutic M&As in Q3 covered a broad spectrum, including immunity, endocrine/metabolic, and oncology. Notable deals included Syntimmune's recombinant, humanized monoclonal antibody, SYNT-001 (autoimmune diseases) and Agilis's gene therapy for L-amino acid decarboxylase deficiency. Phase II assets commanded a higher fee in these transactions.
In a significant development, Telix Pharmaceuticals, based in Australia, put the country on the map with its purchase of France-based ATLAB Pharma for $10 million. Elsewhere, SK Group, a South Korea-based firm, acquired U.S. based Ampac Fine Chemicals for $740 million, and Hefei's Tianmai purchased Harbin Gloria for $627 million in the diabetes space.
However, China-based organizations did not report any M&A deals with disclosed values during Q3. Despite this, the search for companies that conducted therapeutic M&A deals in Q3 focused on immunology, endocrine/metabolic, and oncology therapies with main assets in Phase II remains ongoing.
In conclusion, the third quarter of 2018 was a period of significant activity in the life sciences sector, with the Asia-Pacific region playing a prominent role. The deals varied in structure, with some using the common all-cash approach and others using risk-balancing milestones for early stage therapeutic candidates. As we move forward, it will be interesting to see how these acquisitions shape the future of the industry.
