The biotech product "land grab" by Big Pharma, which intensified when they started feeling the pain of their own blockbuster products coming off patent and facing the specter of increasing generics competition, has reached fever pitch. One or two marquee biotech company acquisitions per year have been part of the biotech scene for at least 15 years but it looks like the floodgates have opened and big takeover deals will be prominent in the second half of the year.Our analysis has shown that since 2005, more than $60 billion has been invested in biotech acquisitions by the pharmaceutical industry, taking into account the market cap of each company at the time of its acquisition. The potential acquisitions of Genentech and ImClone could potentially add a further $106 billion in biotech value.
The industry's market cap closed in August at $507 billion, easing back from a record setting $520-billion mark posted mid-month. Genentech's market cap closed at $104.2 billion; Amgen remained in the second spot at $66.5 billion; and Gilead Sciences was at $48.5 billion.
PARTNERING AND FINANCE
After a slow first quarter, partnering deals picked up pace in the second quarter of 2008 to bring in more than $4.1 billion for US biotech companies. Notable deals in the quarter included a potential $770-million partnership between Astellas and CoMentis to develop products from CoMentis's beta-secretase inhibitor program, including the lead compound CTS-21166, which is being developed as a disease-modifying treatment for Alzheimer's disease.