Re-Creation of the Big Pharma Model via Transformational Deals for Accelerating Innovations: Licensing vs In-house inventions

July 27, 2015 by 2012pharmaceutical

Re-Creation of the Big Pharma Model via Transformational Deals for Accelerating Innovations: Licensing vs In-house inventions

Reporter: Aviva Lev-Ari, PhD, RN

SOURCE

http://www.wsj.com/articles/teva-to-buy-allergan-generics-for-40-5-billion-1437988044

Teva-Allergan Buy Likely Heralds More Big Deals Teva’s acquisition of Allergan’s generic-drugs unit for $40.5 billion is likely to trigger more deal-making in the already-frenzied health-care sector. Bernstein analyst Ronny Gal said investors had highlighted

AbbVie,
Amgen,
Pfizer and
Biogen as potential transaction partners.

“Allergan clearly spells interest in using this case for acquisitions,” he said. (denise.roland@wsj.com; @deniseroland)

SOURCE

Market Talk is a stream of real-time news and market analysis that is available on Dow Jones Newswires.

Allegan

“We will have the potential to add scale in existing therapeutic areas, expand into new therapeutic areas and geographies and evaluate strategic transformational deals as we continue to build on our position as the most dynamic branded growth pharma company,” Allergan CEO Brent Saunders said.

In a sign of its continuing ambition, Allergan announced a deal on Sunday, saying it will pay $560 million upfront for Naurex Inc. and its antidepressant-drug candidate.

SOURCE

http://www.wsj.com/articles/teva-to-buy-allergan-generics-for-40-5-billion-1437988044

Allergan: Pharma’s Biggest Dealmaker Is On The Hunt Again

by Matthew Herper Forbes Staff – My favorite Write @Forbes on Pharma and HealthCare

For investors in the generic business, this may be a bit of a warning that stock prices are getting too heady. Saunders (I spoke to him between meetings this morning, as he went on just an hour of sleep) says he expects Teva stock to rise over the long-term, and thinks that the deal for Allergan will improve as that happens. But he also agrees that he’s getting an amazing multiple, and says that two factors led him to the “bittersweet” decision to sell: the great price, and the fact that consolidation among drug purchasers (CVS, Walgreens) and insurers (Aetna buying Humana, Anthem buying Cigna) led Saunders and Bisarro to realize that they had to either bulk up or get out. And they didn’t want to bulk up. Investors in Mylan Pharmaceuticals, which spurned Teva’s advances: Beware.

Saunders is obviously game. One thing that distinguishes him from Valeant billionaire Michael Pearson, the drug industry’s other great consolidator, is that Saunders comes to this from a different place. A decade ago, it looked like he was being groomed by Hassan to potentially take over Schering-Plough before that company ran into problems and got bought by Merck. Unlike Pearson, he’s not looking so much to dismantle the big pharma model as to re-create it.

SOURCE

http://www.forbes.com/sites/matthewherper/2015/07/27/allergan-pharmas-biggest-dealmaker-is-on-the-hunt-again/?utm_medium=email&utm_campaign=Daily%20Digest%20Send%20Control%202015-07-27&utm_source=Sailthru&utm_term=Daily%20Digest%20Horizon%20Control

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