AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |
Back to Blog
![]() Thus, we expect several consolidations in the space in 2019. Morgan Healthcare Conference that it would like to invest in new pipelines through acquisitions. Thus, we expect the company to be on the lookout for prospective targets. Gilead has failed to make any acquisitions in 2018. Thus, it can look to expand in the space through an acquisition. Biogen is focused on multiple sclerosis and has no cancer candidate in its pipeline. AbbVie is likely to expand its pipeline as its top-grossing drug, Humira, is nearing generic competition. The report also states that Lilly might be open to more deals this year. Per a Bloomberg report, Gilead Sciences, Biogen, AbbVie and AstraZeneca can be potential bidders. Other companies with attractive immuno-oncology pipelines include Alkermes, Syndax Pharmaceuticals, Immune Design, Tocagen, Galectin Therapeutics and others.Īpart from companies focused on immuno-oncology, companies with rare disease drugs in their pipeline will also be acquisition targets. Meanwhile, Incyte’s strong oncology portfolio makes it a lucrative target. These innovative cancer drugs have made smaller biotechs good acquisition targets.įollowing the acquisition of TESARO, the possibility of the acquisition of Clovis Oncology, another maker of PARP inhibitor for ovarian cancer, is high. Verastem’s Copiktra for lymphocytic leukemia, Agios Pharma’s Tibsovo for acute myeloid leukemia and Array BioPharma’s Braftovi for metastatic melanoma are noteworthy. A few of the novel drugs approved in 2018 for treating cancer are from smaller biotechs. These include Clovis Oncology, Epizyme, Array BioPharma and Blueprint Medicines. Please note that stocks of several small cancer biotechs have rallied following the Lilly/Loxo acquisition announcement. The different types of immuno-therapies include monoclonal antibodies/mAbs that attack a very specific part of a cancer cell, immune checkpoint inhibitors and others that boost the overall immune system. The basic concept of cancer immunotherapy or immuno-oncology is to utilize certain parts of the immune system to fight the disease.The therapies either stimulate the immune system to attack cancer cells, inhibit the system which helps cancerous growth or programmed immune system components are introduced in the body. Immuno-oncology has been the key focus area in the past couple of years. Moreover, the pullback in biotech stocks toward the end of 2018 pulled down valuation of these companies, making investment attractive. The rich premiums in the above deals also suggest the same. The companies also repatriated huge cash stashed in other countries during the low tax repatriation window. Merger and acquisitions are also expected to increase as pharma companies have excess cash at their disposal owing to the tax overhaul in 2017. Lilly and Glaxo’s acquisitions are expected to bring several smaller biotechs with targeted therapies in focus and make them potential buyout targets. The acquisition will add TESARO’s PARP inhibitor, Zejula, which is approved for ovarian cancer, to Glaxo’s pipeline. In December 2018, Glaxo offered to acquire TESARO for almost $5.1 billion. ![]() ![]() In another big move, Lilly has offered to take over Loxo Oncology for $8 billion to expand its oncology portfolio into precision medicines or targeted therapies. In fact, this rising competition could be deemed as one of the reasons for this mega merger. The cancer segment is crowded with the presence of legacy drugs and novel drugs making their way. Competition in one of the biggest pharmaceutical domains, the lucrative cancer segment, is on the rise. Speculations are rife about increasing consolidation in the cancer space following the merger. Pharma giant, Bristol-Myers has offered $74 billion in cash and stock to acquire large biotech, Celgene. The announcement of the mega-merger deal between Bristol-Myers and Celgene at the beginning of 2019 has set the stage for M&A activity in the pharma and biotech sector. Here are highlights from Tuesday’s Analyst Blog:Ĭrowded Cancer Space Triggers Big M&A Deals: More in Store? Stocks recently featured in the blog include: Bristol-Myers BMY, Celgene CELG, Lilly LLY and Glaxo GSK. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Chicago, IL – Janu– announces the list of stocks featured in the Analyst Blog.
0 Comments
Read More
Leave a Reply. |