Biopharma appears to be on the cusp of a buyout bonanza. The biotech company, with a market capitalization of about $18 billion, is in talks with Amgen, Sanofiand Johnson & Johnsonunit Janssen Global Services. Bayer advanced talks with Monsanto's management and subsequently raised its off by $3 billion, to more than $65 billion - which represented a 2 percent increase on its previous offer. Monsanto dropped its hostile bid for Syngenta, refocusing on its five-year plan to double earnings and avoid a backlash from large shareholders. Innovation in biotech will continue to be rewarded. I'm interested in what quants do, options traders do, and even what WallStreetBets is doing (keep your friends close and). Opiant pharmaceutical (Opiant presentation). Note that there is always a chance (however slight) that the deal won't close, and then you are looking at 60% downside or more. The merger trades at a slight negative spread before taking into consideration the CVR, so let's take a look at that: Each CVR entitles the holder thereof to receive four contingent cash payments with an aggregate maximum amount payable of $8.00, without interest (each, a Milestone Payment) if the following milestones are achieved: $2.00 per CVR upon achievement of net sales of OPNT003 of $225 million or more during any period of four consecutive quarters prior to the seventh anniversary of the U.S. commercial launch of OPNT003. There Here's the Stock to Buy Now, Join Nearly 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. 3 Can't-Miss Biotech Events Coming Up in 2022, Alnylam Pharmaceuticals, inc (ALNY) Q3 2021 Earnings Call Transcript, Social Security: 4 Big Changes Washington Wants to Make, Warren Buffett Is Raking in $4.84 Billion in Annual Dividend Income From These 6 Stocks, 3 High-Growth Stocks That Could Be Worth $1 Trillion in 10 Years -- or Sooner, History Suggests the S&P 500 Could Soar in 2023. Hikma Pharmaceuticals PLC closed 4.32 short of its 52-week high (21.37), which the company reached on March 25. "We are planning to repurchase Sam Bankman-Fried's interest in Semafor and to place the money into a separate account until the relevant legal authorities Epidiolex is used to treat seizures associated with Lennox-Gastaut syndrome or Dravet syndrome, two rare forms of epilepsy. In fact, Endo is a mini-Valeant in that it has a strategy of buying up smaller companies for their product lines rather than spending on research & development. And both have strong balance sheets, with products that could be attractive to larger pharma companies where growth is slowing. Here are two companies that could follow Salix Pharmaceuticals as targets in the pharma M&A boom. Learn More. Shares of Aurinia hit a record high in November, but have since fallen on the lack of takeover news. The two companies discussed a potential merger, uniting two of the largest pharmaceutical companies. Transactions are recorded by the highest transaction dollar value (rather than using the inflation adjusted values). Their prospects for a buyout are strong, but look for both to continue innovating whether a suitor comes or not. Please disable your ad-blocker and refresh. Six times BIGGER Dividends with this one stock. A person walks past the Pfizer Headquarters building in New York, November 9, 2020. Colao formed Aurinia's commercial organization and helped launch Lupkynis last year. However they later re-negotiated a lower price of $21.5 billion. I think of the two, Jazz is the better buy today. can be tax consequences to trading; consult youre your tax adviser before entering into trades. $2.00 per CVR upon achievement of net sales of OPNT003 of $325 million or more during any period of four consecutive quarters prior to the seventh anniversary of the U.S. commercial launch of OPNT003. Johnson & Johnson announced that it was acquiring Guidant on December 15, 2004, for $76 a share, with the deal being approved later approved on April 27, 2005 by Guidant shareholders. at $20.21, meaning you only pay $0.21 for the option to receive up to $8 in the coming years. Follow Allison Gatlin on Twitter at @IBD_AGatlin. My roots are in the value school but over time I've learned to respect different approaches. *Average returns of all recommendations since inception. Special-Situation And Event-Driven Ideas To Improve Risk Adjusted Returns, 15 years of investing and I feel like a rookie in his first year at the academy. I am not receiving compensation for it (other than from Seeking Alpha). I don't think the deal results in an anti-competitive situation. Opiant Pharmaceuticals, Inc. ( NASDAQ: OPNT) is a nano-cap pharma that's being acquired by small-cap pharma Indivior PLC ( OTCPK:INVVY ). Many times in recent years, premiums on biopharma acquisitions surpassed 100%. That's if we simplify the situation to assume the merger closes. Realtime quote and/or trade prices are not sourced from all markets. Cell and Gene Therapy Manufacturing: Current and Future States, The essential guide to drug commercialization, JPM23: Vaccine developers as dealmakers, Gileads trial tea leaves and building platform companies, Trio of biotech buyouts jumpstarts J.P. Morgan healthcare meeting, Ensoma buys a startup to advance in vivo cell therapy work, Pandion Therapeutics, a small Massachusetts biotech, successfully resisted multiple overtures by pharmaceutical giant Merck & Co. to license or acquire its research, pushing the larger company to pay a sizable premium in the. Opiant is trading at $20.21, meaning you only pay $0.21 for the option to receive up to $8 in the coming years. Two names jump out to me; both are in the sweet spot of pharma buyouts, trading with market caps between $10 billion and $15 billion. Despite COVID-19, sales of Epidiolex were up more than 70% in 2020. Members of Special Situation Report get exclusive access to our subscriber-only portfolios. Making the world smarter, happier, and richer. other investment-related educational materials. Boosting this years average are takeovers from Nestle and Alexion, of Aimmune and Portola respectively, deals that rank among the five richest across all the years in this analysis. GW is beginning two phase 3 clinical trials in the U.S. of another cannabis-related drug, Sativex (known as Nabiximols outside the U.S.). Gilead will have to hope that its big splurge turns out to be a better use of its cash. ET. But the pharma has proven an enthusiastic acquirer of early-stage, smaller companies, buying up seven private and public biotechsover the past two years. No. For A global pandemic has done nothing to crimp M&A premiums, with acquirers forced to swallow ever higher price tags. Keeping with this theme, it has become all too common for early commercial-stage biotech companies to lose a large chunk of their value during the opening phase of an important new drug launch. Invest better with The Motley Fool. With naloxone, many of those deaths would have been avoided. Aurinia Pharmaceuticals (AUPH) hired a trio of executives in a move that suggests it's nowhere near a buyout and AUPH stock plummeted Friday. However, Jazz's stock immediately took a small hit with the announcement, as is typical when one company buys another. Mallinckrodt plc MNK announced that it has acquired privately-held InfaCare Pharmaceutical Corporation.. The biggest premium paid over the period was actually for Tobira, which Allergan bought for $1.7bn in 2016, at a 1,532% 30-day premium; however, this has been excluded as an outlier. As the company investigates therapy possibilities for the drug, that number is likely to take off. 2000-2023 Investor's Business Daily, LLC. Big pharma companies will be keen on picking up biotech stocks for deal sizes in the $5 billion to $15 billion range. I wrote this article myself, and it expresses my own opinions. The deal was announced Feb. 25 and the companies expect it to be completed by June. Horizon, which makes drugs for rare, autoimmune and severe inflammatory diseases, however, added there can be no certainty that any offer will be made. With multiple partnerships in place and a regulatory filing on the near-term horizon, the stock should roar back to life in 2022. It works fast. Even if GW Pharmaceuticals is successful in defending itself in the lawsuit, legal fees could add considerably to the company's expenses in the coming months. Axsome's buyout thesis truly centers around Auvelity, however. Transactions are recorded by the highest After all, the richest deals in this space have generally come in at around six to eight times peak estimated revenue. An antitrust regulator would likely not be thrilled with a pharma tying up the market of addiction treatment and/or overdose treatment. Data is a real-time snapshot *Data is delayed at least 15 minutes. Endo withdrew its $11.2 billion cash & stock offer for Salix, ending its plans to outbid Valeant Pharmaceuticals International for the company. , Mar 28, 2022 As of early 2022, the largest deal in pharmaceutical industry history was Pfizers acquisition of Warner-Lambert for nearly 90 billion U.S. dollars in 2000. It has also estimated more than $1.5 billion in peak U.S. annual sales of its second largest drug Krystexxa, used for the treatment of gout that is not controlled by other medicines. This includes its focus on next-generation narcolepsy treatments. Next is Jazz, which has one of the most effective narcolepsy treatments in the market, Xyrem. On today's stock market, AUPH stock toppled 9.4% to 10.49. However, that doesn't seem to be the case here. Get this delivered to your inbox, and more info about our products and services. That's if we simplify the situation to assume the merger closes. In early February, Merck proposed a buyout at a price of $40 per share, which it revised two days later to $50 per share. Meanwhile, many large drug developers are in need of pipeline infusions. What may be less obvious, though, is that there's plenty of growth expected in the pharmaceutical use of marijuana. Valeant raised its unsolicited offer for Allergan a second time, to $53.3 billion, increasing the cash portion of the bid in an effort to win the backing of the company, with the cash-and-stock portion of the bid valuing each Allergan share at $179.25. After a protracted court battle with Valeant, The two companies had agreed to a $54 billion deal that would allow AbbVie to move its headquarters overseas to Europe, reducing their corporate tax rate. Especially with OTC use, it will be a much better experience if a one-shot dose will do the job. Treatments for overdoses (Opiant pharmaceuticals). This means they have another shot at filing sufficient and clear documents to avoid a 2nd request. The oral solution is the only cannabidiol (CBD) approved as a therapy by the FDA. About half of adults with lupus will develop lupus nephritis. And Merck is rumored to be in advanced talks to buy the cancer specialist Seagen. Amgen spent $3.7 billion on a deal Knappertz comes to Aurinia from GW Pharmaceuticals. Second bid, unanimously rejected by the Shire Board, who concluded that it significantly undervalue the Company, its growth prospects as well as pipeline. Get the free daily newsletter read by industry experts. In addition, GW has other cannabidiol compounds in trials to treat autism, schizophrenia, and neonatal hypoxic-ischemic encephalopathy -- newborn brain damage caused by oxygen deprivation and limited blood flow. Affimed Therapeutics. I think Jazz will be able to make more out of GW Pharmaceutical's pipeline and will increase its revenues and margins with the buyout. These three companies sport highly attractive assets, making them top-tier targets for big pharma. And although the talk of tax inversions has cooled, its worth noting that both these pharma companies are located in the tax-friendly country of Ireland. The Motley Fool has no position in any of the stocks mentioned. Almost all of Indivior's assets are focused on treating addiction. Annual revenues from cannabinoid-based pharmaceuticals are expected to grow to $50 billion by 2029, according to Statista Research. Morning 4: Dearborn woman facing decades in prison for $65M pharmaceutical coupon scheme -- and other news tweet in which Musk claimed he had lined up financing to The company has said it will announce its fourth-quarter numbers this month, but in a preliminary report on Jan. 11, said it made $148 million in the fourth quarter, up 35.7% over the same period in 2019. The average takeout premium for biopharma M&A deals this year is sitting just below 2019s record, which tipped into triple figures, an Evaluate Vantage analysis finds. Opiant Pharmaceuticals, Inc. ( NASDAQ: OPNT) is a nano-cap pharma that's being acquired by small-cap pharma Indivior PLC ( OTCPK:INVVY ). your financial adviser and does not provide any individualized investment advice to you. The huge sums of money flowing into drug development, and the resulting surge in valuations, has meant only one thing for industry buyers: soaring price tags. Semafor is planning to buy out FTX founder Sam Bankman-Fried's roughly $10 million investment in the news startup, the New York Times reported on Wednesday, citing the company's chief executive officer. After the re-negotiated a lower price of $21.5 billion was trumped by Boston Scientifics offer of $24.6 billion, Johnson & Johnson raised their offer to $23.2 billion. On Wednesday, Jazz Pharmaceuticals (JAZZ 0.26%) announced it's buying GW Pharmaceuticals (GWPH) for $7.2 million. A development stage biopharmaceutical company focused on the discovery and development of novel therapies aimed at treating common inflammatory conditions for which there are limited treatment options. The buyout rumors got reignited last month when Novartis (NVS) agreed to acquire The Medicines Co., which is developing Inclisiran, a drug for heart disease, for $9.7 billion. I'd never go all-in on something like this, but to further diversify my portfolio, it is hard to pass it up entirely. Notice: Information contained herein is not and should not be construed as an offer, solicitation, or recommendation to buy or sell securities. Now, there is a major impediment to a potential buyout in this case. En cliquant sur Refuser tout, vous refusez tous les cookies non essentiels et technologies similaires, mais Yahoo continuera utiliser les cookies essentiels et des technologies similaires. Auburn Pharmaceutical is committed to ensuring that all of our products are purchased though the legitimate pharmaceutical supply chain and meet all of the Price as of January 18, 2023, 1:06 p.m. However, the U.S. Treasury passed laws, tightening down on. Another cloud on the horizon is the company's lawsuit with Canadian cannabis giant Canopy Growth (CGC 0.92%), which is suing GW Pharmaceuticals for patent infringement, saying the British company copied Canopy's method of using carbon dioxide to extract cannabinoid. The Elite Pharmaceuticals Inc stock price gained 2.39% on the last trading day (Friday, 13th Jan 2023), rising from $0.0293 to $0.0300.During the last trading day the stock fluctuated 4.90% from a day low at $0.0286 to a day high of $0.0300.The price has been going up and down for this period, and there has been a 5.26% gain for the last 2 weeks. Authors may own the stocks they discuss. Without the acquirer, that becomes a lot more challenging. Join us for the Virtual Trading Summit and learn the fundamentals of smart investing! In a report earlier this month, RBC Follow me on Twitter @Bramdehaas or email me Dehaas.Bram at Gmail. Ownership data provided by Refinitiv and Estimates data provided by FactSet. Had Sanofis move on Principia not leaked exactly 30 days before this transaction was officially announced causing Principias stock to jump by more than 50% this years average premium would also be in triple figures. That provides a good short-term opportunity for investors. A buyer would thus have to be fairly confident that Alnylam's deep value proposition will indeed bear fruit. Thats roughly six times bigger than the average yield of the Dow. Experts argue it would save many of the 70k deaths per year because of OD's: Narcan, which is one name brand for the drug naloxone, quickly reverses the harmful effects of opioids. Opiant's primary asset is OPNT003 and Indivior probably wanted to take it out before the PDUFA date. All rights reserved. Habig will lead Aurinia's commercial efforts, including sales of its one commercial product, a treatment for lupus nephritis called Lupkynis. Hypothetical or modeled portfolio results do not represent the results of an actually The hirings likely cooled investors' expectations that Aurinia could be looking for a buyout. Rather, it is choosing to wait for the right opportunity. of your investment. 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According to Statista Research multiple partnerships in place and a regulatory filing on the near-term horizon, the Treasury... For a global pandemic has done nothing to crimp M & a premiums, with acquirers forced swallow., premiums on biopharma acquisitions surpassed 100 % choosing to wait for the option receive! By industry experts the oral solution is the only cannabidiol ( CBD ) approved as a therapy the. Expected to grow to $ 50 billion by 2029, according to Research!, Xyrem ; consult youre your tax adviser before entering into trades growth is slowing to trading ; consult your. Have strong balance sheets, with products that could follow Salix Pharmaceuticals as targets in the pharma &! Hope that its big splurge turns out to be fairly confident that Alnylam 's deep proposition... Products and services only pay $ 0.21 for the drug, that is. N'T seem to be completed by June, sales of its one commercial product a...
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