Health Care Deal News: Spotlight on Biotechnology- January 2013

Reykjavik, Iceland-based deCODE Genetics agreed to be acquired by Amgen, Inc. (NASDAQ: AMGN) in December 2012, for $415 million in cash. Its expertise in analyzing the link between the human genome and disease susceptibility complements Amgen’s own focus on the discovery, development and manufacture of human therapeutics. The acquisition will help Amgen avoid investing in less well-validated targets for its own research and trials.

In another strategic acquisition, Gilead Sciences, Inc. (NASDAQ: GILD) acquired YM Biosciences Inc. (NYSE: YMI, TSX: YM) in Missassauga, Ontario, for $2.95 per share, or $510 million. YM’s CYT387, an orally administered, once-daily selective inhibitor of the Janus kinase (JAK) family, which showed positive results from a Phase 1 and 2 clinical trial in patients with myelofibrosis.  BofA Merrill Lynch and Bloom Burton & Co. served as financial advisors, and Gowling Lafleur Henderson LLP, Heenan Blaikie LLP and Dorsey & Whitney LLP served as legal advisors to YM. Gilead is advised by Wilson Sonsini Goodrich & Rosati, PC and Blake Cassels and Graydon LLP.

The Medicines Company (NASDAQ: MDCO) announced two acquisitions totaling $300 million on December 12, 2012. The larger chunk of change, $185 million, went to buy Incline Therapeutics, Inc. of Redwood City, California. Incline is focused on developing a patient-controlled system, Ionsys, which dispenses painkiller fentanyl to manage post-operative pain. BofA served as financial advisor and WilmerHale as legal advisor to The Medicines Co. in both deals. Leerink Swann LLC served as Incline’s financial advisor, while Cooley LLP served as its legal adviser. The smaller transaction, at $115 million, was for two-year license rights to Bristol-Myers Squibb’s (NYSE: BMY) drug Recothrom, a surgical hemostat applied topically to stop bleeding. Covington & Burling LLP was legal advisor to BMY.........Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today