BioReg­num: The fog of M&A. What con­sti­tutes a le­git buy­out ‘scoop’ these days?

 

Bioreg­num
The view from End­points

The com­pe­ti­tion be­tween Reuters, Bloomberg and the Wall Street Jour­nal to break the next big M&A sto­ry keeps low­er­ing the bar on what qual­i­fies as a sig­nif­i­cant new move in the bid­ding process.

Reuters is off and run­ning with one of the lat­est scoops, re­port­ing that Mer­ck has joined a group of at least five com­pa­nies that have “sub­mit­ted in­di­ca­tions of in­ter­est” for Medi­va­tion. There’s no clear idea just what that means, or where Mer­ck $MRK might fit in the auc­tion af­ter Sanofi went pub­lic with its last of­fer. But we’re all talk­ing about it.

Bloomberg fol­lowed up with a re­port that Retrophin is “con­sid­er­ing the ac­qui­si­tion” of Rap­tor Phar­ma. That sto­ry fol­lowed a re­port from In­tere­cono­mia that Shire was look­ing to buy Rap­tor $RPTP for around $800 mil­lion.

The mar­ket loves a good ru­mor and they’ll take what they can get. Rap­tor shares are up 20%. Medi­va­tion stock popped as well. On Wall Street, where there’s smoke, there’s a trad­ing op­por­tu­ni­ty.

Not sur­pris­ing­ly, there’s of­ten less to these sto­ries than what meets the eye. Al­ler­gan just had to care­ful­ly dis­en­tan­gle it­self from a re­port­ed ru­mor (from the Wall Street Jour­nal, no less) that it was in the hunt for Bio­gen, with Mer­ck by its side. It turns out that may have been lit­tle more than some ca­su­al chat­ter among ex­ecs. No bid ever ma­te­ri­al­ized – at least not yet – but it made for a good sto­ry for a day.

I know, I wrote it up.

We’re in the dog days of sum­mer, and there are plen­ty of rea­sons for traders and com­pa­nies to gin up a quick and prof­itable trade with some strate­gic ru­mors built around lit­tle more than a smile and a nod. Or less.

Some of this chat­ter may ac­tu­al­ly turn out to be im­por­tant. But I wouldn’t mind if Reuters and Bloomberg set some high­er stan­dards on these sto­ries. Be­ing first in the bat­tle of the ter­mi­nals doesn’t trump the im­por­tance of be­ing right. That’s the ser­vice they’re sell­ing.

Spe­cial re­port: Meet 20 ex­tra­or­di­nary women who are su­per­charg­ing bio­phar­ma R&D

Even though many biopharma leaders have come together in recent years to address its gender gap, the consensus is clear: We still have a long way to go.

Companies this year were 2.5 times more likely than last year to have a diversity and inclusion program in place, according to a recent BIO survey, but women are still largely absent from executive roles. Getting women to enter the industry isn’t the problem — studies show that they represent just under half of all biotech employees around the world. But climbing through the ranks can be challenging, as women still report facing stereotypes, and, unfortunately, harassment.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 125,100+ biopharma pros reading Endpoints daily — and it's free.

Op­ti­miz­ing Oral Drug De­liv­ery us­ing Zy­dis® Oral­ly Dis­in­te­grat­ing Tablet Tech­nol­o­gy to Ad­dress Pa­tient Chal­lenges

KEY POINTS

Patients prefer oral dosing, but swallowing tablets can be a challenge for many patients.
The Zydis® orally disintegrating tablet (ODT) platform addresses challenges associated with oral dosing, expanding benefits for patients and options for healthcare providers.
A strong growth trajectory is expected for ODTs given therapeutic innovation and continued technology development.

Many patients prefer conventional tablets for the administration of medications, but some geriatric and pediatric patients and those with altered mental status and physical impairments find swallowing tablets to be difficult. Orally disintegrating tablets (ODTs), which dissolve completely without chewing or sucking, offer a patient-friendly dosage form for the administration of small-molecule drugs, peptides and proteins. With the potential for multiple sites of drug absorption, often faster onset action for the active pharmaceutical ingredient (API), and potentially greater bioavailability, ODTs are an attractive option for drug developers considering first-to-market formulations or product line extensions of existing drugs with compatible API. In this report, we look at how innovation in the industry-leading Zydis ODT platform is expanding oral formulation options and bringing benefits to patients.

Read the full sponsored article

Please signup to continue — it's fast and free. This article is sponsored by Catalent and produced by Endpoints Studio.

Geoffrey Porges (SVB Leerink)

The 2022 wave com­ing? Top an­a­lyst says Big Phar­ma will have more than $1T avail­able to sat­is­fy its grow­ing ap­petite for biotech M&A

All through this year you could practically feel the frustration of the biotech investor class as M&A activity continued to drag behind expectations — or desires. Buyouts of public companies provide the essential juice for keeping stocks lively, and there’s been a notable lack of juice in 2021.

So is all that about to change, big time?

SVB Leerink’s Geoffrey Porges, a longtime student of biotech M&A, thinks so. In a lengthy analysis he put out last week, Porges totted up the cash flow of the major pharmas and determined that there was a good long list of industry buyers who would have around a half trillion dollars of cash to play with in 2022. Leverage that up with added debt and you could get that deal cache to $1.6 trillion.

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

James Sabry

'We're in': Roche and Genen­tech join forces on a multi­bil­lion-dol­lar dis­cov­ery pact with a brash AI up­start

Over the past couple of years, the top execs at Roche and Genentech have inked a flurry of deals aligning the global pair with several of the new players that have emerged in the booming AI and machine learning world. That strategy was supercharged in the spring of 2020 by their decision to recruit Aviv Regev out of the computational world she occupied at the Broad. And today they’re taking that computational approach in R&D to a whole new level.

Endpoints Premium

Premium subscription required

Unlock this article along with other benefits by subscribing to one of our paid plans.

Mar­ket­ingRx Matchup: How Ab­b­Vie and Bio­haven ads rank in head-to-head mi­graine chal­lenge

Are you ready to rumble? DTC brands that is. MarketingRx is launching a new monthly feature today called MarketingRx Matchup. We’re pitting two pharma brands’ DTC advertising in the same therapeutic category against each other to find out what consumers and patients really think.

Market research company Leger is handling the polling and analysis each month, and I’ll be writing up the results — along with my own take — inside MRx on the first Tuesday of the month.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 125,100+ biopharma pros reading Endpoints daily — and it's free.

Wendy Lund, Organon chief communications officer

Q&A: Organon chief com­mu­ni­ca­tions of­fi­cer Wendy Lund talks about the Mer­ck spin­off, women’s health and why it mat­ters

One of Wendy Lund’s earliest jobs was head of marketing at Planned Parenthood. As the youngest person on its management team, she introduced them to emerging new technologies, and in return, she learned the importance of fighting for what you believe in.

Now as chief communications officer at Organon, the women’s health company recently spun off by Merck, Lund is keeping that point top of mind. That’s in part because women’s health hasn’t been a spotlight therapy area for Big Pharma in years. Several companies have spun off, sold or at least considered selling women’s health assets to focus on “core” products.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 125,100+ biopharma pros reading Endpoints daily — and it's free.

Mar­ket­ingRx roundup: Pfiz­er re-ups pneu­mo­nia ads as Mer­ck threat looms; Re­al Chem­istry founder CEO Jim Weiss steps back

Every autumn, leaves fall from the trees and people start holiday shopping – and for the last few years Pfizer debuts a new “Know Pneumonia” awareness TV ad. This year the commercial, launched a week ago, features different people who talk about why they got vaccinated against pneumococcal pneumonia. Actors portray a young female firefighter with asthma, a mechanic with heart disease and an older woman with her grandchild. A Pfizer spokesperson declined comment on the latest iteration of the long-running campaign.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 125,100+ biopharma pros reading Endpoints daily — and it's free.

Mer­ck pumps the brakes on two more PhI­II tri­als for its lead an­ti-HIV drug

After trial investigators flagged a drop in immune cell counts that an external committee determined was related to treatment last month, Merck has been pausing HIV-related Phase II and III trials ever since.

On Monday, the biopharma company announced it’s pausing enrollment in two of its Phase III trials evaluating its leading anti-HIV drug candidate, which is the once-monthly, oral islatravir.

Endpoints News

Keep reading Endpoints with a free subscription

Unlock this story instantly and join 125,100+ biopharma pros reading Endpoints daily — and it's free.

Covid-19 roundup: Plant-based shot proves safe, 71% ef­fi­ca­cious in PhI­II; Bourla ex­pects an­tivi­ral to launch this month

Quebec-based Medicago and its adjuvant partner GlaxoSmithKline said Tuesday that their plant-based Covid-19 vaccine candidate proved to be 71% efficacious against all variants of SARS-CoV-2 in a Phase III trial of more than 24,000 adults in Canada, the US, UK, Mexico, Argentina and Brazil.

In addition to showing 75% efficacy against the Delta variant specifically, the companies also said the vaccine proved to be generally safe, with no serious adverse events reported and reactogenicity generally being mild to moderate. The results mean that a regulatory submission will be filed with Health Canada imminently, they said.