Deals tracked by BioWorld indicate a slight slowdown in activity moving from April to May, showing an 8% drop in the number of deals and a 43% drop in the disclosed deal values.
In total, 153 deals in May had a combined projected value of $7.64 billion vs. 166 deals in April worth $13.5 billion. Despite the lower numbers, deal values increased in June to $16.5 billion with a few days to go. Including the partial June figures, May represents almost 10% of the deal value this year, which has now reached $78.53 billion, and about 17% of the deal volume, which is at 925 deals total.
Of the licensing, collaborations and joint ventures completed in May, 42 were focused on COVID-19 therapeutics and vaccines, representing nearly 28% of the volume, but only 2% of the projected deal value for the month. In contrast, 36% of the April deals were focused on the SARS-CoV-2 virus.
Only 25 of the total deals in May had disclosed terms. Two were COVID-19-related: Betterlife Pharma Inc. partnered with Altum Pharmaceuticals Inc. in a deal worth $162.85 million to commercialize Anticovir to treat COVID-19 worldwide, except greater China, Japan and the ASEAN countries; and Sanyou Biopharmaceuticals agreed to invest $3.56 million in Shanghai Henlius Biotech Co. Ltd. to use its intellectual property to develop a fully human antibody drug against COVID-19.
Nearly 76% of the projected deal value in May, or $5.8 billion, was for cancer therapies, with two partnerships surpassing the $1 billion mark. Bristol Myers Squibb Co. signed a deal with Repare Therapeutics Inc. to develop multiple oncology drug candidates using the Sniprx synthetic lethal discovery platform worldwide for $3 billion; and Gilead Sciences Inc. agreed to co-develop and co-commercialize Arcus Biosciences Inc.’s clinical programs against cancer everywhere but the U.S. for $2 billion.
Two other large deals completed in May were focused on ocular therapeutics. One worth $495.53 million involved Boehringer Ingelheim International GmbH, which agreed with CDR-Life Inc. to develop and commercialize antibody fragment-based therapeutics for geographic atrophy worldwide. Santen Pharmaceutical Co. Ltd. also signed a large ocular deal, worth $252 million, with Jcyte Inc. to develop and commercialize Jcell for retinitis pigmentosa outside of the U.S., including Europe and Asia.
To see biopharma deals tracked by BioWorld Snapshots in 2020, visit this link:
Abbvie/Allergan M&A tops the year
Abbvie Inc.’s acquisition of Allergan plc for $63 billion was completed in May. It is the largest M&A so far this year and the fourth largest biopharma M&A of all time, behind Actavis plc’s acquisition of Allergan in 2015 for $77 billion (the combined company became Allergan), Bristol Myers’ buyout of Celgene Corp. in 2019 for $74 billion and Pfizer Inc.’s purchase of Wyeth in 2009 for $68 billion.
In total, the Abbvie/Allergan acquisition accounts for 53% of the total M&A value for 2020, which is at $118.67 billion. The 13 biopharma M&As completed in May are about 23% of the 57 completed so far this year. The month showed an increase over April in which there were nine M&As valued at $7.3 billion. So far in June, seven M&As worth $2.97 billion have been completed.
To see biopharma M&As tracked by BioWorld Snapshots in 2020, visit this link:
Biopharma financings data for 2020 through June 25 can be found here: