Mylan $28 bln offer not good enough for Perrigo

September 8, 2015

The generic drugmaker’s hostile bid comes with a skimpy premium, and is mostly in its own paper. Perrigo investors shouldn’t want stock in a shareholder-unfriendly company with bad governance and financial risk. An auction could generate a better outcome than selling to Mylan.

Glaxo sale comes with cheeky earnings side effect

August 21, 2015

UK pharmaceutical firm GlaxoSmithKline is selling a multiple sclerosis drug to Novartis for up to $1 bln. It’s a logical move and Glaxo gets a good price. The quirk: it will include proceeds from the one-off as part of underlying revenue. Pharma investors need to watch their core.

Valeant pops risky $1 bln libido pill

August 20, 2015

The acquisitive drug firm is buying Sprout, the maker of just-approved “female Viagra.” Valeant will have gotten a bargain if it can crank out billions in annual sales. Snag is, the drug isn’t very effective, it has bad side effects, and regulatory restrictions may crimp sales.

Shire M&A machine stumbles on $30 bln Baxalta bid

August 4, 2015

The onetime Irish target for AbbVie is planning a mega-deal of its own. Unlike the previous combination, Shire’s Baxalta purchase has industrial logic as well as tax benefits. Shareholders, though, might have preferred being bought out to assuming all the risks of a takeover.

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.