Next we'll see plagues of frogs and locusts.
First we hear rumors of Pfizer trying to buy AstraZeneca, then we see Novartis and Glaxo and Eli Lilly play lets make a deal, then it was Valeant putting an unwanted offer to Allergan. Is that enough for 1 week?
Apparently not, we then have the spectacle of Allergan putting a poison pill stock purchasing provision in place to help fight off Valeant. Now we hear that prior to Valeant's offer, Allergan tried to make a deal itself by buying Shire. Not only did Allergan want Shires pipeline but its single digit tax rate made it very alluring and would go a long way in Allergan's attempt to fight off Valeant and its wanton destruction of any R&D department it may acquire. See Fierce Pharma and Fierce Biotech.
Also in the news, we hear that Mylan has made a second offer (the first was apparently rejected on April 4th) in an all stock bid for Meda AB at a price equivalent to $6.7 B. That's about a 50% premium over Meda's current market value. Meda would help Mylan expand in generic and branded respiratory and dermatology drugs, and would strengthen its market position. Another example of a generic drug company trying to grow and to also supplement its portfolio with some branded drugs that may face lower competition than its core portfolio. See Bloomberg.
The market is active indeed. You can just smell more deals in the air and can look for more consolidation.
Posted by April 26th 2014.