5 Best Mid-Cap Biotech Acquisition Targets
2019 Q4 has been a great quarter for biotech investors and more M&A deals are expected in 2020.
With the FDA approval of Oxbryta, GBT is the perfect acquisition candidate for treating sickle cell disease.
Global Blood Therapeutics (GBT) - $9B
With a market cap of $4.9B, Global Blood Therapeutics is engaged in the innovation and commercialization of drugs to serve the needs of sickle cell disease (NYSE:SCD). SCD is an inherited blood disorder caused by a genetic mutation in the beta-chain of hemoglobin, leading to the formation of abnormal hemoglobin known as sickle hemoglobin. GBT went up 60% over 3 weeks since the company confirmed FDA approval of Oxbryta (voxelotor), company's main drug to treat sickle cell disease in adults and children 12 years of age and older.
Oxbryta, an oral therapy taken once daily, is the first approved treatment that directly inhibits sickle hemoglobin polymerization, the root cause of SCD.
FDA Approves Oxbryta™ (Voxelotor), the First Medicine Specifically Targeting the Root Cause of Sickle Cell Disease
Following suit, the European Medicines Agency (NYSEMKT:EMA) has also included voxelotor in its Priority Medicines (PRIME) program, while the European Commission (NYSE:EC) has designated voxelotor as an orphan medicinal product for the treatment of patients with SCD. Based on GBT's EHA corporate update in June, Oxbryta is addressing the needs of over 100,000 SCD patients in U.S. and 60,000 patients in Europe. The annual cost of SCD care is $200,000 per patient. An approved drug means R&D risks are largely absent and GBT is attractive to large Biopharma companies which seek to expand their drug pipelines without development risks.
Additionally, GBT started HOPE-KIDS2 which is to confirm there is a decreased risk of stroke for children 2 to 15 years old with Oxbryta. GBT also announced a collaboration with Syros Pharmaceuticals (SYRS) to discover, develop and commercialize novel therapies for sickle cell disease and beta thalassemia. On Dec 18, GBT secured $150M non-dilutive term loan to enhance its cash position for further development and commercialization, which clears any near-term dilution risks and places company in a great spot to negotiate a good deal with potential acquirers. https://seekingalpha.com/article/4314536-5-best-mid-cap-biotech-acquisition-targets