Breakingviews

Novartis spinoff is neat cure for Big Pharma ills

July 29, 2015

The $275 bln Swiss pharma group is injecting three drugs-in-development into a new entity backed by UK investors. Venture capital markets can be better at valuing and nurturing small drugs than Big Pharma shareholders. With biotech markets hot, there’s room for copycat deals.

Teva exits Mylan mess with $40.5 bln Allergan deal

July 27, 2015

The Israeli pharma firm has been locked in a bitter battle to take over the Dutch drugmaker. Now it has agreed to buy the generic business from Allergan. The swap makes sense. Friendly is far easier than hostile, and the Allergan businesses are just as attractive as Mylan.

Latest pharma roll-up leaves lots of room to grow

July 7, 2015

Horizon’s $1.75 bln unsolicited offer for U.S. rival Depomed continues the sector’s M&A rave fueled by tax savings and cost cuts. The Irish bidder is a recent entrant on the scene, so its low debt load and small size means it can easily expand. That portends more deals ahead.

TPG’s $8 bln drug sale far from generic

May 18, 2015

With the sale of Par Pharmaceutical, a maker of off-brand medicines, the buyout firm will generate an eight-fold return on its investment in three years. Though it’s a rare development, the eagerness of buyers like Endo International means more sellers are bound to benefit.

Danaher breakup eases sting of pricey Pall deal

May 13, 2015

The $60 bln dentures-to-lasers concern is not cutting enough costs to justify its $13.8 bln pounce for the filter maker. But boss Tom Joyce’s surprise decision to voluntarily split Danaher in two dangles the prospect of better value for shareholders. The trick is to deliver.

Pure play gets new spin in filter maker M&A

May 13, 2015

Suitors may be willing to splash out $13 bln for Pall, the largest publicly traded air and water purification company. That’s punchy and cost cuts might not cover the premium. But Pall’s scarcity value, profitability and burgeoning biotech customer base make it a tempting target.

Pharma Arbageddon fears keep traders on sidelines

April 27, 2015

Teva is after Mylan, which wants Perrigo. Such multibillion-dollar hostile deals are usually catnip for M&A punters. Recent failures have made them skittish, though. And these two battles come with cross-border complexity, antitrust and a poison pill. No wonder arbs are wary.

Teva’s $40 bln hostile bid puts hope over reality

April 21, 2015

The Israeli drugmaker needs a deal to shore up falling sales. Smaller rival Mylan offers that and oodles of synergies. A tie-up, though, would face antitrust concerns, require high leverage and have to get around a powerful poison pill. No wonder the market is skeptical.

Valeant’s $11 bln bid may have scored two knockouts

March 16, 2015

By sweetening its offer for Salix, the acquisitive drugmaker now backed by hedgie Bill Ackman put rival suitor Endo on the mat. The extra cash and a balance sheet reeling from the Allergan deal leave the business model looking wobbly. Valeant may have just rung its own bell too.

Deal junkie Valeant shoots up on $10 bln fix

February 23, 2015

The drugmaker’s pledge last year to focus on organic growth and debt reduction didn’t last long. Cost cuts and tax savings from buying Salix proved irresistible. What Valeant’s injecting isn’t clear. Salix’s numbers are fuzzy after it admitted pumping clients full of inventory.