Novartis (NYSE:NVS) CEO Joe Jimenez has played down suggestions the drugmaker could bid for Swiss biotech group Actelion (OTCPK:ALIOY), which is in talks with Johnson & Johnson (NYSE:JNJ) about a transaction.
Asked by SonntagsBlick whether Novartis could emerge as a white knight, he said: "We have always said that we will concentrate on complementary acquisitions in the range of $2B-$5B."
Actelion is worth nearly $20B at Friday's closing price.
AstraZeneca (AZN +5.8%) is up on average volume amid rumors that Novartis (NVS -0.6%) may have interest in a takeover. The timing could be right. Earlier today, AZN posted tepid Q2 numbers. Sales were down 11%, cash flow from operations down 83% with no earnings.
PDL BioPharma (NASDAQ:PDLI), through an equity investment in privately held Noden Pharma DAC, acquires Novartis' (NYSE:NVS) anti-hypertension meds Tekturna (aliskiren) and Tekturna HCT (aliskiren and hydrochlorothiazide) tablets in the U.S. The products are marketed as Rasilez and Rasilez HCT in the rest of the world.
Novartis, through an Asset Purchase Agreement with Noden, will receive an upfront payment of $110M, $89M on the first anniversary of the closing of the deal and up to $95M in milestones related to the achievement of sales targets and the date of the launch of a generic version of aliskiren.
PDLI's investment in Noden will eventually reach 88%. It expects to make equity contributions of $107M in the first year of the transaction, including $75M at closing and an additional $32M on the one-year anniversary of the closing.
Noden is expected to secure debt financing in conjunction with the PDLI investment. PDLI expects to invest no more than $145M, but it could potentially rise to $294M depending on the amount of debt raised by Noden. In other words, PDLI will make Novartis whole through additional equity investments in Noden if it cannot secure the expected amount of debt.
PDLI will consolidate Noden' financials into its own, which are expected to be immediately accretive.
The acquired products generated $154M in sales in 2015.
Update: On July 6, PDL announced that the equity investment had closed.
Medivation (NASDAQ:MDVN) +3.9% AH following a Reuters report that Pfizer (NYSE:PFE) has approached the company to express interest in an acquisition, raising the possibility of a bid rivaling Sanofi's (NYSE:SNY) $9.3B offer by Sanofi.
MDVN has not yet decided whether it should engage with PFE in negotiations and is in discussions with its financial and legal advisers, according to the report.
Earlier today, Medivation rejected Sanofi's (SNY -4.6%) $9.3B, or $52.50 per share offer, with one of Bloomberg's sources saying the company is looking for at least $65 per share. Sanofi has the capacity to go higher, say sources, but is naturally reluctant to overpay.
Spinifex's lead product candidate is Phase 2 stage EMA401, an orally available angiotensin II type 2 (AT2) receptor antagonist under development for the treatment of chronic pain, specifically neuropathic pain, without central nervous system (CNS) side effects. Neuropathic pain, such as post herpetic neuralgia, diabetic neuralgia or diabetic neuropathy, is caused by a lesion or disease of the CNS. Current treatments fail to work for all patients and are not well tolerated.
Perrigo (NYSE:PRGO) enters into a agreement to acquire a portfolio of over-the-counter brands from GlaxoSmithKline (NYSE:GSK) related to the latter's commitment to the European Commission to divest the businesses in connection with its consumer health joint venture with Novartis (NYSE:NVS).
Perrigo will buy GSK's NiQuitin nicotine replacement therapy (NRT) business, mostly in the European Economic Area (EEA) and Brazil and Novartis's Australian NRT business, including Nicotinell; several OTC brands including Coldrex (cold and flu med) in the EEA and Panodil (pain relief), Nezeril (nasal decongestant) and Nasin (nasal decongestant) in Sweden and Novartis's legacy cold sore management business in the EEA (Vectavir, Pencivir, Fenivir, Fenlips, Vectatone).
Financial terms are not disclosed.
CEO Joseph Papa says, "This acquisition demonstrates Perrigo's ability to execute on our "Base Plus Plus Plus" strategy in which we make selective, accretive transactions to expand our durable base business. We are building on the global platform we established with the Omega Pharma acquisition to capture an even greater share of the $30B European OTC market opportunity with several well-established complementary brands that bolster our OTC product portfolio." Mylan N.V. (NASDAQ:MYL) will, no doubt, have to sharpen its pencil yet again.
The transaction will be immediately accretive to Perrigo's 2015 non-GAAP EPS, excluding estimated tangible amortization and transaction-related costs. The deal should close in Q3.
Arrowhead Research (NASDAQ:ARWR) acquires Novartis' (NYSE:NVS) RNA interference (RNAi) R&D portfolio and associated assets, including certain patents and patent applications, an exclusive license to other patents and patent applications owned or controlled by Novartis, the assignment of a third party license and three preclinical product candidates.
Specific assets include multiple patent families covering RNAi-trigger design rules and modifications that fall outside of competitors' patents which provides Arrowhead freedom to operate for any target or indication, the assignment of Novartis' license from Alnylam (NASDAQ:ALNY) that gives Arrowhead access to Alnylam IP, excluding delivery, covering 30 gene targets and three product candidates with varying amounts of preclinical data.
Under the terms of the agreement, Arrowhead will pay $10M in cash (includes $7M paid previously) and $25M in ARWR stock within 30 days. Novartis is eligible to receive milestones and single-digit royalties on net sales.
Arrowhead will host a conference call this morning at 8:30 am to discuss the deal.
Both boards have signed off on AbbVie's (NYSE:ABBV) $21B surprise acquisition of Pharmacyclics (NASDAQ:PCYC), announced a short while ago amid speculation that Johnson & Johnson (NYSE:JNJ) (or, earlier, Novartis (NYSE:NVS)) would be the one to acquire the cancer biotech.
With the deal, AbbVie gets Pharmacyclics' blockbuster Imbruvica drug for hematologic malignancies -- which logged $548M in revenues in 2014 (Q4 earnings) and might go all the way to $5B/year. Imbruvica has received four indications in less than 15 months -- the latest being for Waldenström's Macroglobulinemia at the end of January.
Citing good progress in obtaining clearances and approvals, GlaxoSmithKline (GSK +0.1%) expects to complete its three-part deal with Novartis (NVS -0.2%) sometime during the first week in March.
The transaction, first announced in April of last year, consists of GSK buying NVS's vaccines business, the creation of a consumer healthcare joint venture between the two firms and the sale of GSK's marketed oncology portfolio to NVS, including related R&D and the rights to two AKT inhibitors in development.