Continuing the trend of recent biotechnology acquisitions, Novartis yesterday announced its purchase of publicly traded NeuTec Pharma, a British firm founded in 1997 that uses antibody fragments to develop treatments for infectious diseases. Novartis will pay approximately $569M for NeuTec, representing a premium of 109%. Novartis does not appear to have had any partnerships with NeuTec prior to the acquisition. Last year, Pfizer paid $1.9B, about an 84% premium, for Vicuron Pharmaceuticals, another company that focuses on developing anti-infectives.
NeuTec does not have any products on the market but has two in late-stage development. Mycograb, which targets hsp90, is currently awaiting EMEA approval for treating invasive candidiasis. Novartis anticipates a
No surprise, Sidney Taurel, Eli Lilly’s CEO says that consolidation will continue as pharmaceutical companies struggle to find growth. As mentioned in a previous post, both private and public companies will continue to attract substantial premiums with such a demand for pipeline products.
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