Replies to post #65581 on Biotech Values

[gfp927z]

Dew, board, Any thoughts on likely bio buyout candidates? Some of the frequently mentioned names I've seen include -

Onyx (Bayer)
Alexion
Watson
United Therapeutics
Vertex (J+J)
Amylin (Lilly)


Some others -

Pharmasset (Roche)
Biomarin (Genzyme)
Abraxis
Momenta (Novartis)
GTCB
Medarex
Amag
Middlebrook
OSI Pharma
Xenoport
Invitrogen
Sequenom


Any thoughts on these, or other ideas? Thanks.

[DewDiligence]

Shionogi to Acquire SCRX at a 61% Premium to
Market in Yet Another “Cheap Dollar” Buyout

http://www.reuters.com/article/marketsNews/idINT9202720080901

›Mon Sep 1, 2008 3:09am EDT

TOKYO, Sept 1 (Reuters) - Shionogi & Co, Japan's sixth-largest drug maker by market value, said it planned to buy U.S.-based Sciele Pharma Inc (SCRX) for $1.4 billion as it seeks to expand in the key U.S. market.

Shionogi said it will offer $31 per Sciele Pharma share, a 61 percent premium to the U.S. firm's closing share price of $19.27 on Friday.

Georgia-based Sciele Pharma specialises in branded prescription products focused on cardiovascular, diabetes, women's health and pediatrics.

Shionogi, whose mainstay business is antibiotics, said in a statement that the acquisition would allow it to use Sciele's sales network to expand sales of its drugs.

Eager to expand globally, Japanese pharmaceutical makers have been ploughing [sic] money made on top-selling drugs into acquisitions.

Takeda Pharmaceutical Co Ltd, Japan's top drug maker, No. 3 ranked Daiichi Sankyo and fourth-largest Eisai Co Ltd have all announced multi-billion dollar overseas deals in the past few months [#msg-31859175].

The deal is also the latest in a string of overseas acquisitions by financially sound Japanese companies hunting for opportunities outside their home market.

Already this year, announced outbound acquisitions from Japan total $42 billion, according to Thomson Reuters data, nearly doubling the figure for all of 2007.

Shionogi's bid is expected to start within 10 business days and will be completed after 20 days following the launch. [In other words, it’s a cash tender offer—no shareholder vote required.]

Shionogi's shares closed down 0.6 percent at 2,460 yen ahead of the announcement.‹


<font size=2><font color=red>“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

[DewDiligence]

Recent Biotech Buyouts at a Large Premium

[Added SCRX deal. Table excludes hostile deals not
yet consummated such as Roche-DNA and BMY-IMCL.]

 
 Acquired         Premium    Deal         iHub  
 Company  Buyer   to Market  Value  Date  Reference  
 KOSN     BMY       233%     $190M  5/08  #msg-29647147 
 COLY     PFE       167%     $165M 11/07  #msg-24600805 
 IOMI     Intercell 147%     $190M  5/08  #msg-29232165  
 BTRX     Stiefel   136%     $150M  6/08  #msg-30201906 
 SGXP     LLY       119%     $64M   7/08  #msg-30547648 
 ENCY     PFE       118%     $350M  2/08  #msg-26978155 
 TRCA     Ipsen     104%     $660M  6/08  #msg-29795183  
 Speedel  NVS        94%     $880M  7/08  #msg-30588524 
 SIRT     GSK        85%     $620M  4/08  #msg-28705020  
 Ventana  Roche      72%     $3.4B  1/08  #msg-30912677 
 Jerini   Shire     *71%     $520M  7/08  #msg-30452872 
 Acambis  SNY        64%     $550M  7/08  #msg-30990498 
 Shionogi SCRX       61%     $1.4B  9/08  #msg-31859174 
 MEDI     AZN      ‡‡53%     $15.2B 4/07  #msg-19020387 
 MLNM     Takeda     53%     $8.8B  4/08  #msg-28365383 
 LEVP     VPHM     ††49%     $440M  7/08  #msg-30704409 
 PHRM     CELG       46%     $2.9B 11/07  #msg-24645394      
 BRL      TEVA     **42%     $9.0B  7/08  #msg-30792830 
 MOGN     Eisai      39%     $3.9B 12/07  #msg-25163775  
 CGPI     Galderma   30%     $420M  2/08  #msg-28286522 
 APPX     Fresenius †29%     $940M  7/08  #msg-30498388 
 ARI.to   Roche     ‡15%     $190M  7/08  #msg-30904056 
  
 *199% premium to volume-weighted 
 price during preceding 3 months. 
  
 **Premium based on 7/16/08 close;  
 $9B price includes assumption of debt. 
  
 †Premium reaches 63% if earn-out met. 
  
 ††Premium reaches 103% if earn-out met; 
 base price subject to collar. 
  
 ‡Number is misleading inasmuch as Arius announced in 
 May 2008 that it was pursued by an unnamed suitor. 
  
 ‡‡Premium relative to 4/11/07 close; MEDI 
 announced intention to be sold on 4/12/07.