he U.S. biotechnology
arena is undergoing a re-cord-breaking M&A cycle
for the industry. After
generating M&A activity
valued at $235 billion during 2014, the
U.S. biotech sector produced more than
$100 billion in deals during first-quarter 2015. Industry analysts note that
most M&A cycles last between three to
five years. With 2014 being the first year
in the newest cycle, the biotech industry
is anticipated to continue wheeling and
dealing at record levels, with some analysts firms projecting a growth rate of
about 20 percent for the next two years.
Since the last time this annual report
was published by Med Ad News two
years ago, 14 of the top 100 revenue-generating biotech entities from that
listing have been acquired, including
former top 20 members Elan Corp.
(purchased by Perrigo Co.) and
Cubist Pharmaceuticals Inc. (bought by
Merck & Co.)
Another former top 100 company acquired since 2013 was InterMune Inc.
by the world’s largest biotechnology
company, Roche. The Swiss pharma
giant spent about $8.3 billion on the
August 2014 acquisition despite the
California biotech firm’s leading drug
prospect having not yet produced any
revenue at that point in time. But three
months later, InterMune’s Esbriet (
pir-fenidone) was FDA-approved for treating idiopathic pulmonary fibrosis. Patients with IPF gradually lose the ability
to breath as fibers fill up their lungs.
Another biotech acquisition by Roche
during the past year was that of
Trophos in January 2015 for up to EUR
470 million. A privately held biotech
company based in Marseille, France,
Trophos’ proprietary screening platform generated olesoxime (product
code TRO19622), which is being developed for spinal muscular atrophy.
SMA is a rare and debilitating genetic
neuromuscular disease most commonly
diagnosed in children. Pivotal Phase II
results with olesoxime in SMA demon-
strated a beneficial effect on the main-
tenance of neuromuscular function in
individuals with Type II and non-ambu-
latory Type III SMA, as well as a reduc-
tion in medical complications associ-
ated with the disease.
The investigational medicine olesoxime is designed to protect the health of
motor nerve cells. Olesoxime has been
granted Orphan Medicinal Product designation for treating SMA by the European Medicines Agency and Orphan
Drug Designation by FDA.
Roche announced in December 2014
a deal to acquire Dutalys GmbH, a privately held biotech company with headquarters in Vienna, Austria. Dutalys
is dedicated to the discovery and development of fully human, bi-specific
antibodies based on their proprietary
DutaMab technology. The bi-specific
antibodies developed with this platform
are designed to provide novel, best-in-class molecules for several therapeutic
fields. This transaction further highlights Roche’s leadership in developing
therapeutic antibodies.
A conventional bi-specific monoclonal antibody is a biotechnologically engineered artificial protein consisting of
fragments of two different monoclonal
antibodies and consequently can bind
to two different antigens. The DutaMab
technology platform varies by allowing
for the development of fully human bi-specific antibodies where each arm of
the antibody demonstrates high affinity
and simultaneous binding against both
targets, excellent stability, and good
manufacturing properties. This process
enables the treatment of disease mechanisms that could not be addressed with
conventional bi-specific antibodies.
Another private company acquisition
by Roche during 2014 was that of
Santaris Pharma in August. The Copenhagen, Denmark-based biopharmaceutical
company pioneered its proprietary
Locked Nucleic Acid (LNA) platform
that has contributed to an emerging
era of RNA-targeting therapeutics. This
new class of medicines has the potential to address hard-to-treat diseases in
various therapeutic fields.
Santaris’ LNA platform and drug discovery engine unites the company’s proprietary LNA chemistry with its highly
specialized and targeted drug discovery
capabilities to rapidly deliver drug candidates against mRNA and microRNA.
As a result, scientists are able to develop
drug candidates for diseases that are
difficult, or impossible, to target with
contemporary drug platforms including antibodies and small molecules. The
LNA platform is designed to overcome
the limitations of earlier antisense and
siRNA technologies, in particular via a
unique combination of small size, high
binding affinity and metabolic stability that enables this new class of drug
The Magazine of Pharmaceutical Business and Marketing • medadnews.com • June 2015 • Volume 34, Number 3 • $25
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M&A activity throughout the industry is helping
the biotechnology world soar to new heights.
The
Acquisition
Game
By Andrew Humphreys • andrew.humphreys@medadnews.com