Nominees for Clarivate Analytics’ Cortellis “Deal of the Year” awards
announced at 36th Annual J.P. Morgan Healthcare Conference
SAN FRANCISCO--(BUSINESS WIRE)--
Clarivate Analytics, the global leader in providing trusted insights and
analytics to accelerate the pace of innovation, has revealed that the
market value of the most innovative and impactful global life sciences
transactions of 2017 increased by 6% totaling US $364 billion, despite a
decrease in overall deal volume. The transactions nominated for the
annual Clarivate Cortellis Deal of the Year Awards include licensing and
mergers and acquisitions. The announcement of the nominees at the 36th
Annual J.P. Morgan Healthcare Conference in San Francisco coincided with
the Clarivate Deals and Portfolio Annual Review presentation – the
foremost independent analysis of the economic trends shaping the life
sciences sector in 2017.
Clarivate’s Deals and Portfolio Annual Review showcased a deep-dive
analysis of 4,234 life sciences transactions. While overall the
aggregate dollar value for deals increased from 2016, deal volume
dropped by approximately 3% and saw contractions in almost every type of
deal structure. This represents a reversal from last year when deal
volume was up, but deal dollars were down.
“There is a healthy appetite for acquisitions and strong liquidity for
deals in today’s market, but several factors contributed to deal volume
falling below the last two years,” said Laura Vitez, commercial insights
manager at Clarivate. “2017 saw a stronger IPO market for biopharma than
the previous year, which meant companies had more viable alternatives to
stay independent. We also experienced high valuations that resulted in
heightened expectations during deal discussions. Finally, we saw many
U.S. companies take a wait-and-see approach as the prospects for
corporate tax reform played out right up to the end of the year.”
A total of ten Deal of the Year nominees was announced, five each in the
categories of M&A and licensing. They include some of the industry’s
most recognizable names (AstraZeneca, Celgene, and Merck) and life
sciences upstarts like Rigontec, CureVac, and IFM Therapeutics. Nominees
were recognized for innovations in creative deal structures, the use of
novel technology, addressing unmet medical needs and new market
penetrations. The analysis was drawn from the Cortellissuite of solutions from Clarivate Analytics. Industry participants
may vote for the Deals of the Year at http://info.clarivate.com/DOTY.
Winners will be announced in the beginning of February 2018.
Vitez added: “2018 shows promise for significant deal making, driven in
large part by the lower corporate tax rates and tax repatriation
allowances that were included in the final U.S. tax bill signed in
December. U.S. biopharma companies comprise one-third of the top U.S.
companies’ offshore cash holdings. When combined with the new lower
corporate tax rates, we anticipate a considerable amount of the tax
savings and repatriated cash will be used for M&A activities.”
This year’s Deals and Portfolio Review included a particularly deep
investigation into oncology trends, which account for the largest number
of M&A transactions by therapeutic area and the largest volume of
licensing transactions. All but one of the top 20 dealmakers were active
in oncology transactions last year.
“Oncology deals represented more than three times as many deals as
neuroscience, the next most prevalent therapeutic area,” said Jaime
Munro, global practice leader for portfolio and licensing at Clarivate.
“Interestingly, we are seeing a trend of oncology deals focusing on
earlier stages, with discovery and preclinical assets the focus of
nearly two-thirds of oncology deals.”
2017 Deal of the Year nominees are:
M&A
J&J/Actelion
Johnson & Johnson agreed to acquire
Actelion in a $30 billion deal that is second in size only to the 2009
Roche/Genentech merger in pharma and biotech M&A. J&J gains the
worldwide rights to ponesimod and cadazolid, while Actelion spins out
its research and early-stage assets into a new company.
Bioverativ/True North
Bioverativ acquired True North, a
private, clinical stage company focused on candidates for
complement-mediated diseases, for $825 million total with $400 million
upfront. This early acquisition, which included $425 million in
milestones, strengthens innovation in a rare blood disease.
BMS/IFM Therapeutics
In a deal that had everything – a young
firm, cool technology and a spinout – BMS acquired IFM for $2.32
billion, with $300 million upfront. The cancer sector deal includes
$1.01 billion in milestones for IFM’s preclinical STING (simulator of
interferon genes) and NLRP3 agonist programs.
Gilead/Kite
Gilead acquired Kite, a developer of cell
therapies for cancer treatment that express either a chimeric antigen
receptor (CAR) or an engineered T-cell receptor (TCR), depending on the
cancer type. This transformative $11.9 billion deal brings
immuno-oncology to the forefront at Gilead.
Merck/Rigontec
Merck acquired Rigontec, a University of Bonn
spinout focused on developing retinotic acid-inducible gene 1 (RIG-1)
targeting therapies for various tumors. The $552.3 million acquisition
was a smartly structured early sale, and RIG-1 has potential with
Merck’s Keytruda.
Licensing
AstraZeneca/Pieris
The companies entered into a $2.145
billion deal that included $45 million upfront, under which AstraZeneca
would develop and commercialize inhaled respiratory drugs, including
PRS-060, using Pieris's Anticalin platform for respiratory diseases. The
transaction leverages a novel technological modality with multiple
co-development opt-ins.
Celgene/BeiGene
Celgene and BeiGene entered into a licensing
agreement to develop and commercialize cancer drug BGB-A317 to combat
solid tumors. The $1.292 billion deal includes $263 million in upfront
cash and a $150 million equity stake. The deal is a win for both
companies, as Celgene gets a PD-1 for its immuno-oncology backbone,
while BeiGene gains an instant China portfolio.
Amgen/CytomyX
This creatively structured $1.668 billion
discovery stage licensing deal includes $40 million in upfront cash and
$20 million in equity for the development of T-cell engaging bispecific
antibodies against EGFR and certain immuno-oncology targets worldwide.
Eli Lilly/CureVac
Eli Lilly licensed CureVac’s RNActive
technology for the development and commercialization of up to five
cancer vaccine products worldwide. A $1.803 billion deal with $50
million upfront and a $53 million equity stake, this is CureVac's
largest collaboration to date, highlighting the industry's move toward
targeting neoantigens.
AbbVie/Alector
Under this discovery stage deal, AbbVie will
develop and commercialize Alector's immune therapies against Alzheimer’s
disease and other neurodegenerative disorders worldwide. It works toward
the promise of immuno-neurology by targeting microglia and macrophages –
immune cells in the brain. The $225 million announcement includes $205
million upfront and $20 million in equity.
About Clarivate Analytics
Clarivate™ Analytics is the global
leader in providing trusted insights and analytics to accelerate the
pace of innovation. Building on a heritage going back more than a
century and a half, we have built some of the most trusted brands across
the innovation lifecycle, including the Web of Science™, Cortellis™,
Derwent™, CompuMark™, MarkMonitor® and Techstreet™. Today, Clarivate
Analytics is a new and independent company on a bold entrepreneurial
mission, to help our clients radically reduce the time from new ideas to
life-changing innovations. For more information, please visit clarivate.com.
View source version on businesswire.com: http://www.businesswire.com/news/home/20180116006132/en/
Clarivate Analytics
Jason Milch, 312-379-9406
jmilch@baretzbrunelle.com
Source: Clarivate Analytics