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After a relatively quiet 2022, 2023 is anticipated to be a more robust year for pharma M&A activity. In recent months, players such as Pfizer (NYSE:PFE), Sanofi (NYSE:SNY), Chiesi, AstraZeneca (LON:AZN) and Amgen (Nasdaq:AMGN) have unveiled acquisition plans that could reshape the landscape of the sector. This article delves into the details of prominent recent M&A deals and explores their potential impact on the future of the pharma sector.
Pfizer plans to acquire Seagen
New York City–based Pfizer has recently been on a shopping spree, scooping up Trillium Therapeutics, Biohaven, Global Blood Therapeutics, and Arena Pharmaceuticals. Now, the company has unveiled its plans to acquire Seagen (Nasdaq:SGEN), a Seattle biotech firm focused on oncology. The proposed acquisition, valued at $43 billion, awaits regulatory approval. Pfizer plans to offer $229 per share for Bothell, Washington-based Seagen, which was founded in 1997 as Seattle Genetics.
The acquisition has the potential to bolster Pfizer’s standing in oncology. Seagen is a frontrunner in the development of a class of medication known as antibody-drug conjugates (ADCs). ADCs employ antibodies to ferry small molecule drugs directly to tumors, potentially mitigating side effects and enhancing efficacy.
Last year, Seagen generated more than $2 billion in revenue.
While Pfizer’s revenue has soared in recent years, its stock has eroded as investors worry about the company’s reliance on COVID-19 products, as Zacks notes.
Sanofi plans to scoop up Provention Bio for close to $3B
French pharmaceutical giant Sanofi has agreed to acquire Provention Bio (Nasdaq:PRVB)., a U.S.-based biopharma focused on intercepting and preventing immune-mediated diseases such as type 1 diabetes. The deal is valued at $2.9 billion, or $25.00 per share in cash. The deal would add a novel diabetes drug known as Tzield to Sanofi’s cardiometabolic portfolio. A full course of the drug has a wholesale cost of close to $200,000.
On March 13, Provention Bio shares skyrocketed 260% after Sanofi announced the news.
Chiesi offers to buy Amryt in all-cash deal worth $1.5B
On January 9, privately-held biopharma Chiesi Farmaceutici revealed its intent to purchase Amryt Pharma, a biopharma firm specializing in rare diseases. The proposed all-cash transaction is valued at up to $1.47 billion. The closing of the deal entails an upfront consideration of roughly $1.25 billion, with an additional $225 million in contingent value rights (CVRs) as potential further compensation.
AstraZeneca agrees to acquires CinCor for $1.8 billion
British-Swedish conglomerate AstraZeneca announces $1.8 billion acquisition of CinCor Pharma
AstraZeneca has announced the $1.8 billion acquisition of CinCor Pharma, which is focused on resistant and uncontrolled hypertension and chronic kidney disease. The acquisition would thus strengthen AstraZeneca’s cardiorenal pipeline. CinCor’s lead asset is baxdrostat, a highly selective, oral small molecule inhibitor of aldosterone synthase for hypertension.
Amgen’s pending $27.8B acquisition of Horizon Therapeutics
One of the pharma M&A deals slated to close in 2023 is Amgen’s pending $27.8 billion acquisition of Horizon Therapeutics (Nasdaq:HZNP), which focuses on rare and rheumatic diseases. In 2022, Horizon generated $3.6 billion in revenue. Horizon’s chief revenue driver is Tepezza, a drug to treat thyroid eye disease. Other notable drugs in its portfolio include Krystexxa, Ravicti, Procysbi, Actimmune and Uplizna.
According to Jefferies, the deal could help Amgen counteract a potential $30 billion sales shortfall it could face in the coming years due to biosimilar competition.
The acquisition is not a done deal, however. In February, the companies disclosed that it has received a second request for information from the FTC. DOJ and FTC have vowed to step up antitrust enforcement. While FTC is taking longer to review proposed M&A activity, it isn’t clear whether the federal government is increasingly obstructing such transactions, according to Evaluate.