Today's news discussed two biotech companies looking for potential suitor. The circumstances of the two -- Dendreon and Actelion -- couldn't be more different though. Dendreon's search for possible buyers stems from its inability to efectively sell its prostae cancer-drug, Provenge. As a result, the company has dwindled from a market cap of $7 B to one that is less around $400 M due to its missteps over the past few years since Provenge was approved. With its burn rate and lessening reserves, Dendreon has little choice. It remains to be seen however if there will be any takers. JP Morgan Chase & Co has been tasked with drumming up some bidders. See Bloomberg 1 & 2, and Xconomy.
The second story is that Actelion looks to be back on acquirers' short lists as it received approval for its new drug, Opsumit, for the treatment of pulmonary arterial hypertension (PAH). Thus it moves from largely a one trick pony with Tracleer to a company with two revenue generating drugs -- sending its market cap up by $3 B this year alone. The Opsumit approval was much needed as Tracleer is scheduled to go off patent during 2015. GSK, Novartis and Bayer are all being mentioned as parties who might wish to purchase Actelion. Opsumit has been forecast to produce $2.2 B annually at its peak. Actelion also has a drug, selexipag in its pipeline in phase III which would create further interest if positive results were reported next year. Analysts say Actelion would fetch $13 B if selexipag fails and more than $20 B if it is a successful drug. See Bloomberg and Fierce Biotech.
Posted by Bruce Lehr Oct 28th 2013.