Biotech Values

[DewDiligence]

Re: ABBV-PCYC post-mortem

In terms of deal size, deal structure, and short-term investor reaction, the closest analog to ABBV-PCYC is not (as some have posited) GILD-VRUS or LLY-IMCL, but rather is AMGN’s 2001 acquisition of Immunex (the developer of Enbrel) for $16B.

In both deals, the acquiring company obtained about half of the commercial rights to the acquired company’s only approved drug, which was relatively early in its launch. (Wyeth, then called American Home Products, was Immunex’s partner on Enbrel.) Both deals had a substantial stock component, and both were roundly criticized as unduly expensive and dilutive.

Here’s a quick read on the AMGN-IMNX deal (h/t @lomu_j):
http://money.cnn.com/2001/12/17/deals/amgen_immunex