Biotech Values

[DewDiligence]

NVS has long had a more deliberate style of M&A than most Big Pharma. Exhibit A is the drawn-out pursuit of Chiron, and Exhibits B and C are the Alcon and Speedel deals, where the former was completed in three steps and the latter involved an out-license and clawback along the way.

On the other hand, the Sandoz division of NVS has used a quick-strike approach in its deals for Hexal and Eon, so there’s a disparity in style within the same corporate umbrella. Moreover, MNTA is a singular case insofar as it has expertise that could help both Sandoz and NVS’ pharma division, which makes handicapping a possible deal more difficult.

The bottom line is that I wouldn’t presume NVS is going to make a move to acquire MNTA during the next couple of years.