Biotech Values

[ghmm]

Don't know if you would consider Acambis a biotech and since they delisted their ADR's I lost track of them just noticed this. At one point I thought they could be a dominant player in the vaccine market but management never seemed to be able to make progress. It probably will be in better hands now.

http://www.iht.com/articles/reuters/2008/07/25/business/OUKBS-UK-ACAMBIS-SANOFIPASTEUR.php

Sanofi to buy vaccine maker Acambis
By Ben Hirschler Reuters
Published: July 25, 2008

LONDON: Sanofi-Aventis agreed on Friday to buy vaccine maker Acambis for 276 million pounds, in a deal highlighting big drug companies' hunger for biotech assets.

The acquisition of Acambis -- a long-term partner on several projects -- was a "logical step" for Sanofi, said Wayne Pisano, head of the French group's vaccine division, Sanofi Pasteur.

Sanofi is already one of the world's top vaccine producers and buying Acambis brings it new products and technologies in several key areas.

Sanofi is offering 190 pence in cash for each Acambis share, a 64 percent premium to the stock's closing level on Friday.

"It's a very good deal for Acambis, given the prospects for that company's shares," said Canaccord Adams analyst Guillaume van Renterghem.
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An alternative offer looks unlikely, since Sanofi has already received irrevocable undertakings from top shareholders Invesco Asset Management and Goldman Sachs, who together hold 42 percent of Acambis stock.

The deal is expected to close by the end of September.

Vaccines -- seen in the past as a low-margin, low-growth business -- have become a target of increased investment by pharmaceutical companies in recent years, reflecting scientific breakthroughs and the development of more profitable products.

Bulking up in vaccines is part of a broader strategy to increase exposure to biotechnology that is being pursued by many companies.

On Monday, Roche Holding launched a $43.7 billion (22 billion pound) bid to buy out the remainder of Genentech it does not already own, in what would be largest biotech acquisition ever.

And in the last month alone, Novartis has agreed to buy Speedel for about $880 million, and GlaxoSmithKline clinched a record $3.3 billion insomnia drug licensing deal with Actelion .

Analysts say drugmakers are scrambling to secure promising biotech pipelines and technologies to ensure future growth as many of the world's top-selling drugs face patent loss over the next five years.

DEMISE OF UK BIOTECH

The recommended acquisition will bring some cheer to Acambis investors, who have seen the shares dwindle from a peak of 395p in late 2003.

But the deal is a two-edged sword for Britain's biotech sector, which has witnessed many of its top companies -- such as Celltech, Cambridge Antibody Technology and PowderJect -- delisted after being sold to larger drugmakers.

Acambis in April won a 10-year contract worth $425 million to supply the U.S. government with smallpox vaccine, and it also has three late- and mid-stage programmes partnered with Sanofi for vaccines against Japanese Encephalitis, Dengue and West Nile virus.

In addition, it has early stage programmes targeting Clostridium difficile, influenza and genital herpes.

"Sanofi Pasteur, which is one of the world's largest vaccines companies, will benefit strategically not only from Acambis' pipeline and technologies, but also from its significant U.S.-based R&D and manufacturing infrastructure," said Acambis Chairman Peter Fellner.

Acambis was advised by Goldman Sachs and Sanofi by Morgan Stanley.

(Additional reporting by Mike Elliott; Editing by Quentin Bryar)