Actavis Generics: A 2-Year Ticket To Insolvency?
Graham Osborn • 49 Comments
Graham Osborn • 49 Comments
The Preferred Way To Play The Allergan-Pfizer Break Up
Andrew Walker, CFA • 56 Comments
Andrew Walker, CFA • 56 Comments
Wed, Sep. 21, 1:04 PM
- As previously reported, Bayer (OTCPK:BAYRY) aims to jettison its dermatology business in order to help fund its Monsanto buy. Although discussions are in the early phase, there appears to be plenty of interested parties. In addition to skincare-focused players like Allergan (NYSE:AGN), Almirall (OTC:LBTSF) and Nestle (OTCPK:NSRGY)(OTCPK:NSRGF), Teva Pharmaceutical Industries (NASDAQ:TEVA), Perrigo (NASDAQ:PRGO) and Sun Pharma (OTC:SMPQY) are also reportedly in the mix.
- On the institutional investor side, KKR (NYSE:KKR), Nordic Capital, Bain Capital, Blackstone Group (NYSE:BX) and Cinven may also be eyeing the unit which, analysts say, could fetch $1.1B.
- Previously: Bloomberg: Bayer eyes sale of $1.1B dermatology business (Sept. 8)
Tue, Sep. 20, 4:39 PM
- Allergan (NYSE:AGN) reinforces its commitment to the NASH space with its second acquisition in a day. It has acquired privately held Akarna Therapeutics for $50M in upfront cash plus unspecified milestones.
- Akarna develops small molecule drugs for the treatment of inflammatory and fibrotic diseases. Its lead product candidate is AKN-083, a preclinical-stage FXR agonist in development for the treatment of NASH. FXR (farnesoid X receptor) is a master regulator of carbohydrate and lipid metabolism, bile-acid homeostasis, inflammation and fibrosis. FXR agonists reduce the expression of certain genes that control the synthesis of triglycerides in liver cells. They reduce liver steatosis (infiltration of liver cells with fat), lower the release of free fatty acids from fat tissue and reduce their uptake by the liver and improve tissues' responsiveness to insulin.
- Allergan announced its takeover of Tobira Therapeutics (NASDAQ:TBRA) this morning.
Tue, Sep. 20, 8:23 AM
- Allergan (NYSE:AGN) inks an agreement to acquire nano cap Tobira Therapeutics (NASDAQ:TBRA) for $28.35 in upfront cash, a whopping six-fold premium to yesterday's close of $4.74. The potential consideration paid to TBRA shareholders could rise to $1.695B based on the successful completion of certain milestones [up to $49.84 in Contingent Value Rights (CVRs)] related to Tobira's lead product candidate cenicriviroc, in development for the treatment of non-alcoholic steatohepatitis (NASH).
- The extraordinary premium is even more surprising considering the failure of cenicriviroc in an earlier NASH study, although the company said the primary endpoint would not be required to support a marketing application. Allergan clearly agrees.
- Cenicriviroc is a dual inhibitor of proteins called CCR2 and CCR5 that play key roles in inflammation and fibrosis.
- Previously: Tobira's lead product candidate flunks mid-stage NASH study; shares plummet 54% premarket (July 25)
- Update: Allergan will host a conference call tomorrow, September 21, at 8:30 am ET to discuss the transaction and other recent R&D acquisitions.
Wed, Sep. 14, 8:27 AM
- Allergan plc (NYSE:AGN) inks a deal to acquire Vitae Pharmaceuticals (NASDAQ:VTAE) for ~$639M in cash or $21 a share, almost a 160% premium to yesterday's close of $8.10.
- The transaction beefs up Allergan's dermatology pipeline with the addition of VTP-43742, a retinoic acid receptor-related orphan receptor gamma inhibitor for the treatment of psoriasis and other autoimmune disorders and VTP-38543, a topical Liver X receptor beta selective agonist for the treatment of atopic dermatitis.
- The deal should close by year end.
- Read now Vitae Pharmaceuticals: Go Long?
Thu, Sep. 8, 2:11 PM
- Monsanto (MON +1.3%) moves higher following a Bloomberg report that Bayer (OTCPK:BAYRY) is exploring the sale of its dermatology business, as the German company seeks to sell peripheral businesses to boost its pursuit of MON.
- The business could attract interest from existing makers of skincare products such as Nestle’s (OTCPK:NSRGY, OTCPK:NSRGF) Galderma, Allergan (NYSE:AGN) and Almirall (OTC:LBTSF) of Spain, as well as P-E firms, according to the report.
- Analysts say a sale of the unit could fetch more than €1B ($1.1B).
Tue, Sep. 6, 9:36 AM
- Allergan (AGN +0.5%) acquires Ann Arbor, MI-based RetroSense Therapeutics for $60M in upfront cash plus milestones related to lead product candidate RST-001, a gene therapy for the potential treatment of retinitis pigmentosa, an inherited disorder characterized by the gradual loss of vision due to retinal degradation. It affects ~100K Americans.
- RST-001 potentially restores vision via the use of a photosensitivity gene called channelrhodopsin-2 which creates new photosensors in retinal ganglion cells.
Thu, Aug. 11, 8:44 AM
- Allergan (NYSE:AGN) inks a deal to acquire privately held ForSight VISION5 for $95M in upfront cash plus an undisclosed launch milestone payment related to its lead development program, a peri-ocular ring designed for extended drug delivery and lowering elevated intraocular pressure (IOP) in patients with glaucoma.
- ForSight's lead candidate, called the Bimatoprost Ring, is a non-invasive product that rests on the surface of the eye under the eyelid. It can be inserted by an optometrist as well as an ophthalmologist. Over a period of months, it slowly releases the drug bimatoprost (marketed in an eye drop formulation as LUMIGAN by Allergan) to lower IOP.
- A Phase 2 study completed in 2015 showed a single administration of the ring provided sustained reduction in IOP for six months and ~90% of participants retained the inserts in both eyes without clinician assistance.
- The transaction should close within 60 days.
Wed, Aug. 3, 12:17 PM
- The report from David Faber echoes one from the network's Meg Tiffell last night, but perhaps with more conviction.
- As for Merck (MRK -1.4%) - also rumored to have interest in Biogen (NASDAQ:BIIB) - Faber has nothing new to report.
- Biogen is lower by 4% today, but remains about 5% higher than the price it was at prior to yesterday's WSJ report of buyout interest.
- Allergan (AGN +1.7%)
Wed, Aug. 3, 10:20 AM
- Teva Pharmaceutical (TEVA +1%) CEO Erex Vigodman tells Bloomberg that the completion of its $40.5B purchase of Allergan's (AGN +1.6%) generics unit does not mean it will let up its pursuit of innovative branded medicines.
- Teva will target “attractive specialty assets, or branded drug assets or pipeline assets” that fit with medicines for pain, migraines, neuro-degenerative and movement disorders, as well as respiratory diseases, the CEO says.
- Even so, integrating AGN is Teva’s top priority, according to Vigodman; Teva also will need to absorb AGN's Anda U.S. distribution unit, which it agreed to acquire today for $500M.
- AGN says Anda will be reported as discontinued operations starting in Q2, with the business expected to generate $375M in net sales and ~$0.05/share in Q2, amounting to ~$1.5B in net sales and ~$0.15/per share in 2016.
Tue, Aug. 2, 5:32 PM
- Lumped in with Merck earlier on chatter that it would consider taking over Biogen (NASDAQ:BIIB), Allergan (NYSE:AGN) is unlikely to pursue such a deal, CNBC biotech/pharma reporter Meg Tirrell says.
- Biogen -- which finished the day up 9.4% after earlier news broke -- is down 2.5% after hours. Allergan, meanwhile, has turned up 0.5% in the late session after declining 1.6% today.
- Biogen saw its market cap rise to just over $75B today. It's looking for a new chief after CEO George Scangos said last month he was departing following six years in the post.
Tue, Aug. 2, 2:46 PM
- Biogen (NASDAQ:BIIB) has jumped 5.6% into a trading halt as chatter centers on a potential takeout from Allergan (NYSE:AGN) or Merck (NYSE:MRK).
- IShares Nasdaq Biotech index (NASDAQ:IBB) jumped from the red to a 0.8% gain.
- Biogen might not go for a deal, but the two suitors have tested the waters, the WSJ reports.
- The company's worth more than $68B, setting up what could be the sector's next blockbuster deal.
- Updated 2:51 p.m.: Back on the move, Biogen is now up 7.3%.
Wed, Jul. 27, 3:51 PM
- The U.S. Federal Trade Commission (FTC) accepts the proposed consent order related to Teva Pharmaceutical Industries' (TEVA +1.4%) acquisition of Actavis Generics (AGN +4.4%). The transaction, now valued at ~$35B, should close next week.
- According to Teva, the deal will be 14% accretive to 2017 non-GAAP EPS, increasing to 19% in 2019. The combined firm should generate more than $25B in free cash flow through 2019.
- Read now A Prescription For Teva Shareholders On Actavis Generics
Wed, Jul. 13, 7:30 AM
- In a regulatory filing, Allergan (NYSE:AGN) reports that it and (NYSE:TEVA) agreed to extend the outside date of their deal to October 26 from July 26 (this is the date that the closing must occur). On the conference call this morning, management stated that the close is imminent, however.
- Other amendments include increasing the base working capital adjustment by at least $650M (up to $800M under certain circumstances), adding Actonel (authorized generic) and Carafate (authorized generic) to the list of excluded products and a reduction in the cash consideration to be paid by $221M.
Tue, Jun. 21, 7:54 AM
- Impax Laboratories (NASDAQ:IPXL) acquires a group of 15 generic drugs from Teva Pharmaceutical Industries (NYSE:TEVA) and affiliates of Allergan (NYSE:AGN) for total consideration of $586M. The transaction also includes the return of the rights to the pending abbreviated New Drug Application (ANDA) for a generic version of Johnson & Johnson's (NYSE:JNJ) Concerta (methylphenidate hydrochloride) to Impax.
- The deal will be immediately accretive to Impax's earnings. The group generated ~$150M in sales and ~$100M in gross profit in 2015. Per IMS, the U.S. market for the portfolio is ~$3.1B.
- Impax will finance the acquisition with cash on hand and $400M in term loans.
- Teva divested the products to satisfy U.S. Federal Trade Commission conditions for its planned acquisition of Allergan's generics business.
Mon, Jun. 13, 3:14 AM
- Looking to bolster its U.S. business, Dr. Reddy's Laboratories (NYSE:RDY) has agreed to buy eight generic medicines from Teva Pharmaceutical (NYSE:TEVA) and Allergan (NYSE:AGN) for $350M in cash.
- The sale to India's second-largest drugmaker could put Teva a step closer to winning U.S. antitrust clearance for its $40.5B acquisition of Allergan's generic drugs portfolio, and is contingent on the deal's approval.
Fri, May 6, 2:10 AM
- Teva Pharmaceutical (NYSE:TEVA) is finalizing as much as $2B in asset sale agreements to win U.S. antitrust clearance for its $40.5B acquisition of Allergan's (NYSE:AGN) generic drug portfolio, according to Reuters.
- Teva said in March that a regulatory review of the deal by the Federal Trade Commission was taking longer than anticipated, and that it expected the transaction to be completed by June.