Busted Mega-Mergers Have Big Pharma Eyeing Smaller Players — And Biotechs Couldn’t Be Happier
In an atmosphere that is newly hostile toward blockbuster mergers, companies are left to chase growth elsewhere. In other news, Sarepta is selling off stock so it can sink the millions into clinical trials and manufacturing for its just-approved muscular dystrophy drug.
The Wall Street Journal:
Big Pharma’s Big Checkbooks Drive Biotech Resurgence
Drug companies are starting to open their wallets again. That means big things for small biotechs. Merger-and-acquisition activity has returned with a fury. Allergan announced Tuesday it had acquired Tobira Therapeutics in a deal worth up to $1.7 billion if Tobira’s products hit certain milestones. That amounts to more than 19 times Monday’s closing price. (Grant, 9/21)
The Wall Street Journal:
Sarepta To Sell Up To $225 Million Of Stock
Sarepta Therapeutics Inc. intends to sell up to $225 million of stock and use the proceeds for clinical trials, drug commercialization, manufacturing and other purposes. The company’s shares surged 74% to $48.94 on Monday as the U.S. Food and Drug Administration gave accelerated approval to eteplirsen, its drug for Duchenne muscular dystrophy, following sharp disagreements within the agency. Sarepta stock rose 14% on Tuesday, when it received favorable patent decisions in a dispute with BioMarin Pharmaceutical Inc. (Beckerman, 9/21)
