M&A

The next PARP M&A deal? Tesaro shares surge on latest buzz about a buyout

Lonnie Moulder, Tesaro CEO

The PARP wars may be about ready to inspire some fresh M&A activity.

In the wake of Pfizer’s big $14 billion acquisition of Medivation last fall, which included the PARP drug talazoparib, sources are telling Reuters that Tesaro $TSRO has been fielding some incoming queries about a buyout. And with its PARP drug niraparib under review at the FDA, Tesaro has become one of the most frequently cited takeover targets in biotech, where promising late-stage assets can be hard to find.

Niraparib is billed as a likely rival to AstraZeneca’s Lynparza, which got an accelerated approval with a thin set of data that the pharma giant has been building on. And back in December Clovis gained an accelerated approval for another PARP, Rubraca (rucaparib).

As we reported a few days ago, niraparib sits high on a list of 15 potential blockbusters ready to hit the market this year, with 2022 sales revenue projected at $1.8 billion for the ovarian cancer market.

That’s why analysts like David Nierengarten at Wedbush remain convinced that a deal almost has to be in the works. He noted:

TSRO remains our top takeout pick for 2017. We believe TSRO’s profile as an oncology company with one approved product (Varubi) and a potential blockbuster in registration (niraparib’s PDUFA date is June 30, 2017), is attractive for big pharma.

Tesaro’s shares are up 14% Wednesday afternoon.

Tesaro, reports Reuters, hasn’t been shopping the company. But then again, that’s not how you get the best price for a biotech. That dance generally involves an unsolicited bid followed by a tussle over valuation and hopefully – from the seller’s perspective – a bidding war among eager rivals. Sanofi has played that role twice, first boosting the value of Medivation and then helping Actelion with its negotiations with J&J – which ended in a $30 billion deal and a spinout of a new company focused on the pipeline.

Last year proved a disappointment on the M&A side. But with several deals done early in 2017, including Actelion, the smart money is betting on a slate of biotech buyouts this year.


The best place to read Endpoints News? In your inbox.

Comprehensive daily news report for those who discover, develop, and market drugs. Join 41,700+ biopharma pros who read Endpoints News by email every day.

Free Subscription

Head of Business Development
Wren Therapeutics Boston, MA
Life Sciences Venture Professional
Northpond Ventures Washington, DC
Senior Drug Discovery Oncologist
Schrödinger New York, NY

Visit Endpoints Careers ->