C&EN’s Year in Pharma 2019 – Chemical & Engineering News

Pharma behemoths merged, forming even bigger firms with heft in therapeutic areas like oncology and immunology, but they also got rid of businesses that fell outside their core mandate of discovering new medicines. A number of midsize cancer- and gene therapy–focused biotech firms were gobbled up, and more are likely to be absorbed into larger companies in 2020.

Meanwhile, the industry continued its shift beyond the traditional paradigm of small molecules and antibodies. Investors poured money into promising new modalities, with significant cash going to next-generation cell therapies, the next wave of gene editors, and complex molecules called protein degraders.

The return of the megamerger

Drug companies went on a buying spree in 2019 as they sought to dominate the cancer market and offset competition from generics

by Lisa M. Jarvis

After a year in which deals were few and far between, major drug firms made up for lost time in 2019. This year, big pharma companies brought back the megamerger, inking several mammoth deals that will reconfigure the industry ranks. They also made a slew of midsize purchases meant to add technology or bolster a key therapeutic portfolio.

M&A mania

Drug firms sought to gain leadership in specific therapeutic areas and to compensate for patent losses on key products.

Date announced Acquirer Target Value ($ billions) Aim of deal
January Bristol-Myers Squibb Celgene $74 Leadership in oncology therapeutics
January Eli Lilly and Company Loxo Oncology 8 Portfolio of small-molecule cancer drugs
February Roche Spark Therapeutics 4.8 Approved gene therapy Luxturna, gene therapy pipeline, and manufacturing capacity
April Catalent Paragon Bioservices 1.2 Gene therapy manufacturing capabilities
May Merck & Co. Peloton Therapeutics 2.2 Clinical-stage HIF-2α inhibitor for renal cell carcinoma
June AbbVie Allergan 63 Offsetting revenue loss from expiry of AbbVie’s Humira patent
June Pfizer Array BioPharma 11.4 Portfolio of small-molecule drugs and productive research team
September H. Lundbeck Alder BioPharmaceuticals 1.95 Pipeline of migraine treatments
September Sobi Dova Pharmaceuticals 0.91 Expansion into hematology with approved product Doptelet
September Vertex Pharmaceuticals Semma Therapeutics 0.95 Stem cell-derived therapy for type 1 diabetes
November Novartis The Medicines Company 9.7 Cholesterol-lowering drug in late-stage studies

Date announced: January

Acquirer: Bristol-Myers Squibb

Target: Celgene

Value ($ billions): $74

Aim of deal: Leadership in oncology therapeutics

Date announced: January

Acquirer: Eli Lilly and Company

Target: Loxo Oncology

Value ($ billions): $8

Aim of deal: Portfolio of small-molecule cancer drugs

Date announced: February

Acquirer: Roche

Target: Spark Therapeutics

Value ($ billions): $4.8

Aim of deal: Approved gene therapy Luxturna, gene therapy pipeline, and manufacturing capacity

Date announced: April

Acquirer: Catalent

Target: Paragon Bioservices

Value ($ billions): $1.2

Aim of deal: Gene therapy manufacturing capabilities

Date announced: May

Acquirer: Merck & Co.

Target: Peloton Therapeutics

Value ($ billions): $2.2

Aim of deal: Clinical-stage HIF-2α inhibitor for renal cell carcinoma

Date announced: June

Acquirer: AbbVie

Target: Allergan

Value ($ billions): $63

Aim of deal: Offsetting revenue loss from expiry of AbbVie’s Humira patent

Date announced: June

Acquirer: Pfizer

Target: Array BioPharma

Value ($ billions): $11.4

Aim of deal: Portfolio of small-molecule drugs and productive research team

Date announced: September

Acquirer: H. Lundbeck

Target: Alder BioPharmaceuticals

Value ($ billions): $2

Aim of deal: Pipeline of migraine treatments

Date announced: September

Acquirer: Sobi

Target: Dova Pharmaceuticals

Value ($ billions): $0.9

Aim of deal: Expansion into hematology with approved product Doptelet

Date announced: September

Acquirer: Vertex Pharmaceuticals

Target: Semma Therapeutics

Value ($ billions): $1

Aim of deal: Stem cell–derived therapy for type 1 diabetes

Date announced: November

Acquirer: Novartis

Target: The Medicines Company

Value ($ billions): $9.7

Aim of deal: Cholesterol-lowering drug in late-stage studies

Source:

Companies

According to an analysis done by the investment firm SVB Leerink, global pharmaceutical merger and acquisition activity is on track to hit a 10-year peak in 2019. Leerink expects total transaction value for the year to reach or exceed $250 billion.

Bristol-Myers Squibb kicked off the bustling year by announcing it would pay $74 billion to acquire Celgene in a deal designed to create a leader in cancer and immunology, areas where the companies have complementary drug portfolios. That deal led to another sizable one: in August, Celgene agreed to sell its psoriasis treatment Otezla to Amgen for $13.4 billion, an arrangement intended to satisfy the US Federal Trade Commission’s concerns about the dominance of BMS and Celgene’s combined immunology franchise.

Other notable deals