Two of the most growing branches of Indian Pharma have been seeing M&A activities
- Domestic Branded Pharma
- CDMO Space – Advent paid 9x P/S for the acquisition of Suven Pharma. Another PE in the running was Blackstone.
This interest comes from the brand reconcgnition leading to customer stickiness ( and have higher . And with a moat which generic pharma players were missing.
Acquisitions in the Biologic Space by Sun Pharma
In a parallel world, on Jan 19 2023, Sun pharma acquired a company in USA which has a molecule in late stage development.
Milestone related payout: First is once the net sales of deuruxolitinib in the US are equal to or exceed $100 mn between the beginning of commercial sales and Mar 31, 2027, the shareholders will receive $1 per share additional. Thereafter, an additional $2.5 per shot will be payable the first time in any period of four consecutive financial year quarters between the time of the first commercial sale of deuruxolitinib in the US and Dec 31, 2029, net sales of deuruxolitinib is equal to or exceeds $500 mn. For the nine-month period ending Sep 2022, Concert reported total revenue of $29 thousand and a net loss of $90.6 mn. The R&D expense for that nine-month period was $75.7 mn. As of Sep 30, 2022, Concert had approximately $148.9 mn in cash, cash equivalents and investments.
They had done a similar acquisition of biologic drug called Illumya from Merck at Phase 3 in 2014, which has been quiet fruitful. Illumya recorded sales of USD 315 mn in FY22.
In Europe, the drug has been out licensed by Sun to Almirall, sold by the brand name Illumetri. They recorded a sale of Euro 125 mn from the drug for FY22.
The above acquisitions also reflects Sun’s commitment to build it’s dermatology portfolio.
6th Sep 2023
Stelis plant acquisition by Syngene - replaces their Greenfield Biologics Capex
19th Mar 2024
Eris Lifesciences acquired injectable formulations from Biocon Biologics
