Health Care Deal News: Spotlight on Pharmaceuticals

Close but no cigar for Allergan, Inc. (NYSE: AGN), considering it missed the billion-dollar mark with its $958 million acquisition for MAP Pharmaceuticals, Inc. (NASDAQ: MAPP). Or perhaps the global health care giant deserves a cigar after all, for buying the biopharmaceutical company. MAP is developing and commercializing new therapies in neurology, including LEVADEX, an orally inhaled drug for the potential acute treatment of migraines in adults, a novel delivery system for a drug that has long been used to treat the condition. FDA approval is pending, but the agency’s responses to clinical trials hasn’t raised any red flags, and analysts expect the migraine drug could be the blockbuster that relieves some patent-cliff tension for Allergan. Goldman Sachs & Company is acting as financial advisor and Gibson, Dunn & Crutcher LLP as legal advisor to Allergan. Centerview Partners LLC is acting as exclusive financial advisor and provided a fairness opinion to MAP, and Latham & Watkins LLP is legal advisor to MAP.
Well to the rear, Watson Pharmaceuticals, Inc. (NYSE: WPI) paid $150 million in cash up front for Uteron Pharma SA of Liege, Belgium. The private company is a spin-off of the University of Liege and develops products dedicated to female health care. The acquisition strengthens Watson’s Womens Health development portfolio by adding two potential near-term opportunities in contraception and infertility, and one novel oral care contraceptive projected to launch in 2018. An additional $155 million in future milestone payments is part of the deal. On a trailing 12-month basis, Watson generated revenue of $4.6 billion, EBITDA of $1.1 billion and net income of $261 million. The transaction is expected to be minimally dilutive in 2013 and 2014, becoming accretive in 2015. Jefferies acted as sole financial advisor to Uteron………Want to read more? Click here for a free trial to The Health Care M&A Information Source and download the current issue today