Monthly M&A Activity Report Biotech, October 2016

Monthly Biotech M&A Activity Report 1: PE, VC and DC

The following report details mergers and acquisitions activity in the biotech sector in October 2016 using data from the Zephyr database. It focuses on deal activity by target company. Click here to access the raw data in an Excel spreadsheet.

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PE, VC and DC activity down month-on-month The value of private equity, venture capital and development capital (PE, VC and DC) deals targeting biotech companies declined month-on-month in October. In all there were 35 deals worth a combined USD 152 million announced over the four weeks, compared to 53 deals worth USD 426 million in September.

Private equity, venture capital and development capital deals by volume and value Announced date

No of deals

Total deal value (mil USD)

Oct-16

35

152

Sep-16

53

426

It was a similar story year-on-year as volume dropped 24 per cent from 46 while value slid 46 per cent from USD 280 million in October 2015.

Aug-16

40

2,681

Jul-16

47

788

Jun-16

40

395

The result is particularly disappointing given that both volume and value have reached their lowest levels for some time; the last time volume plumbed such depths was in August 2013 (31 deals) while value has not been this low since February 2013 (USD 151 million).

May-16

59

493

Apr-16

43

478

Mar-16

49

396

Feb-16

36

295

Jan-16

53

695

Dec-15

57

1,712

Nov-15

51

751

Oct-15

46

280

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Monthly Biotech M&A Activity Report 1: PE, VC and DC

Private equity, venture capital and development capital deals by volume and value

3,000

70 60

Deal value (mil USD)

2,500

50

2,000

40 1,500 30 1,000

20

500

10

0

0 Oct-15

Nov-15 Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16 Jun-16

Total deal value (mil USD)

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Jul-16

Aug-16 Sep-16

Oct-16

Number of deals



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Monthly Biotech M&A Activity Report 1: PE, VC and DC

Funding rounds once again account for bulk of top deals

US leads the way by PE, VC and DC volume and value

The majority of the top PE, VC and DC investments in biotech companies in October took the form of funding rounds as none of the month’s largest transactions involved the purchase of a majority shareholding.

The US topped both the volume and value rankings in October with 29 deals worth a combined USD 136 million. In terms of value this places it well ahead of its nearest competitor, Belgium with USD 13 million. The only other countries to notch up any value during the month were Switzerland and Canada, both of which attracted USD 1 million.

October’s largest deal by value was worth USD 40 million and involved USheadquartered cardiovascular and muscle disease therapeutics researcher and developer Miragen Therapeutics, which was targeted by an investor syndicate including Fidelity Management & Research, Brace Pharma Capital, Atlas Venture and MP Healthcare Venture Management. Almost all of the month’s top 20 PE, VC and DC biotech investments featured companies based in the US; only three transactions had targets based elsewhere. Two of these involved Belgian companies, while the other had a Swiss target.

The US’s value result represents a decline month-on-month as the USD 136 million invested is down 61 per cent from USD 352 million in September and 45 per cent from USD 246 million in October. Interestingly, Belgium, Switzerland and Canada all increased over the four weeks, albeit from a low base of zero investment in September. It was a similar story by value as Belgium placed second, albeit some way behind with just two deals. Switzerland, Canada, India and Russia all placed joint third with a single deal each.

Investors in the month’s other deals included Vesalius Biocapital Partners, New Enterprise Associates, Venture Incubator and Rivet Ventures Management.

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Monthly Biotech M&A Activity Report 1: PE, VC and DC

Private equity, venture capital and development capital deals by value Deal value (mil USD)

Deal type

Target

Target business description

1.

40

Minority stake

Miragen Therapeutics Inc.

Cardiovascular and muscle disease therapeutics research and development services

US

2.

16

Minority stake

SQZ Biotechnologies Co

Biotechnology

US

04/10/2016

3.

12

Minority stake

Mustang Bio Inc.

Biotechnology

US

14/10/2016

4.

12

Minority stake

Genten Therapeutics Inc.

Biotechnology

US

03/10/2016

5.

11

Minority stake

Promethera Biosciences SA/NV

Liver disease treatment allogeneic adult stem cell therapy BE research and development services

6.

9

Minority stake

Promentis Pharmaceuticals Inc.

Schizophrenia and central nervous system disorder treatment pharmaceuticals developer

US

05/10/2016

7.

8

Minority stake

CRS Bio Inc.

Biotechnology

US

03/10/2016

8.

8

Minority stake

BioConsortia Inc.

Agricultural biotechnology research services for fertiliser utilisation

US

26/10/2016

9.

5

Minority stake

LumiThera Inc.

Biotechnology

US

10.

4

Minority stake

Natals Inc.

Vitamin food supplement manufacturer

US

Page 4

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Target country



Announced date

Equity provider BVIM LLC; Jafco Co., Ltd; Fidelity Management & Research Company; MP Healthcare Venture Management Inc.; Atlas Venture Advisors Inc.; Remeditex Ventures LLC; Brace Pharma Capital; MRL Ventures LLC

Societe Regionale d'Investissement de Wallonie; Mitsubishi UFJ Financial Group Inc.; Vesalius Biocapital Partners Sarl; Boehringer Ingelheim GmbH; Fund+ NV; SMS Investments SA; Mitsui & Co Global Investment Ltd; Life Liver Co., Ltd; Cell Innovation Partners Ltd

31/10/2016

28/10/2016

18/10/2016 New Enterprise Associates Inc.; NVP Associates LLC; Forerunner Ventures Management LLC; Rivet Ventures Management LLC; Upfront Ventures Management LLC

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19/10/2016

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Monthly Biotech M&A Activity Report 1: PE, VC and DC

Private equity, venture capital and development capital deals by value (Cont’d) Deal value (mil USD)

Deal type

Target

Target business description

Target country

11.

3

Minority stake

Artizan Biosciences Inc.

Biotechnology

US

14/10/2016

12.

3

Minority stake

Provista Diagnostics Inc.

Blood-based diagnostic tests developer

US

25/10/2016

13.

3

Minority stake

IGC Bio Inc.

Biotechnology

US

14/10/2016

14.

2

Minority stake

Kurin Inc.

Biotechnology

US

06/10/2016

15.

2

Minority stake

Ogeda SA/NV

G-Protein Coupled Receptors (GPCRs) targeted small molecule drug manufacturer, G-Protein Coupled Receptors (GPCRs) targeted small molecule drug research and development services

BE

Societe Regionale d'Investissement de Wallonie; 19/10/2016 Federale Participatie- en Investeringsmaatschappij / Societe Federale de Participations et d'Investissement; BNP Paribas Fortis Private Equity Expansion NV; Fund+ NV; Vesalius Biocapital Partners Sarl

16.

2

Minority stake

Carogen Corporaton

Biotechnology

US

11/10/2016

17.

2

Minority stake

BALX Holdings LLC

Biotechnology

US

21/10/2016

18.

1

Minority stake

Inform Genomics Inc.

Cancer supportive care and inflammatory diseases medicines developer, Cancer supportive care and inflammatory diseases molecular diagnostic products developer

US

28/10/2016

19.

1

Minority stake

Inositec AG

Molecule inositol phosphate-based CDI drugs developer

CH

20.

1

Minority stake

C4 Imaging LLC

Biotechnology

US

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Announced date

Equity provider

Zurcher Kantonalbank; Venture Incubator AG

27/10/2016 01/10/2016

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Monthly Biotech M&A Activity Report 1: PE, VC and DC

Target countries by volume: private equity, venture capital and development capital deals

Target countries by value: private equity, venture capital and development capital deals

Target country

Oct-15

Sep-16

Oct-16

Target country

Oct-15 (mil USD)

Sep-16 (mil USD)

Oct-16 (mil USD)

US

36

42

29

US

246

352

136

Belgium

1

0

2

Belgium

18

0

13

Switzerland

0

0

1

Switzerland

0

0

1

Canada

3

1

1

Canada

1

0

1

India

0

0

1

Russia

2

0

1

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Monthly Biotech M&A Activity Report 1: PE, VC and DC

Private equity, venture capital and development capital investors Private equity firm

Number of deals

Number with consideration

Total deal value (mil USD)

Average deal value (mil USD)

1

Remeditex Ventures LLC

1

1

40

40

2

Atlas Venture Advisors Inc.

1

1

40

40

3

MRL Ventures LLC

1

1

40

40

4

Brace Pharma Capital

1

1

40

40

5

Jafco Co., Ltd

1

1

40

40

6

BVIM LLC

1

1

40

40

7

MP Healthcare Venture Management Inc.

1

1

40

40

8

Fidelity Management & Research Company

1

1

40

40

9

Fund+ NV

2

2

13

7

10

Vesalius Biocapital Partners Sarl

2

2

13

7

11

Societe Regionale d'Investissement de Wallonie

2

2

13

7

12

SMS Investments SA

1

1

11

11

13

Mitsui & Co Global Investment Ltd

1

1

11

11

14

Cell Innovation Partners Ltd

1

1

11

11

15

Boehringer Ingelheim GmbH

1

1

11

11

16

Mitsubishi UFJ Financial Group Inc.

1

1

11

11

17

Life Liver Co., Ltd

1

1

11

11

18

Rivet Ventures Management LLC

1

1

4

4

19

Upfront Ventures Management LLC

1

1

4

4

20

Forerunner Ventures Management LLC

1

1

4

4

21

New Enterprise Associates Inc.

1

1

4

4

22

NVP Associates LLC

1

1

4

4

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Monthly Biotech M&A Activity Report 2: Mergers, Acquisitions, Joint Ventures

M&A volume and value down in October Both the volume and value of mergers and acquisitions (M&A) followed the same pattern as PE, VC and DC activity in October as declines were registered across the board. In all there were 83 deals worth a combined USD 1,739 million, compared to 133 deals worth USD 2,489 million in September. It was a slightly more positive showing in a year-on-year comparison. While volume still declined from 92 deals in October 2015 value actually increased 20 per cent from USD 1,444 million over the same timeframe. M&A once again favoured biotech companies in the US in October as the country was targeted in 41 deals worth USD 768 million. In terms of value the Cayman Islands placed second with USD 324 million, followed by China with USD 211 million. Second place by volume was taken by Canada with six deals, while South Korea came third with five.

Page 8

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Deals by volume and value Announced date

No of deals

Total deal value (mil USD)

Oct-16

83

1,739

Sep-16

133

2,489

Aug-16

94

18,933

Jul-16

101

2,294

Jun-16

100

2,818

May-16

114

9,788

Apr-16

104

1,295

Mar-16

183

5,636

Feb-16

86

1,872

Jan-16

112

35,496

Dec-15

142

8,490

Nov-15

117

12,462

Oct-15

92

1,444

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Monthly Biotech M&A Activity Report 2: Mergers, Acquisitions, Joint Ventures

Deals by volume and value

40,000

200 180

Deal value (mil USD)

35,000

160

30,000

140

25,000

120

20,000

100 80

15,000

60

10,000

40

5,000

20

0

0 Oct-15

Nov-15 Dec-15

Jan-16

Feb-16

Mar-16

Apr-16

May-16 Jun-16

Total deal value (mil USD)

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Jul-16

Aug-16 Sep-16

Oct-16

Number of deals



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Monthly Biotech M&A Activity Report 2: Mergers, Acquisitions, Joint Ventures

Top 20 deals by value Deal value (mil USD)

Deal type

Target

Target business description

Target country

Announced date

1.

205

Capital Increase 14%

Tecon Biology Co., Ltd

Animal feed manufacturer, Biological medicine and animal drug manufacturer, Veterinary drug manufacturer

CN

Investors; Xinjiang Production and Construction 15/10/2016 Group State-owned Assets Operation Company; Xinjiang Tianbang Investment Co., Ltd

2.

200

Acquisition 100%

Motus Therapeutics Inc.

Peptide therapeutics for metabolic diseases research and development services

US

Allergan plc

3.

200

Capital Increase

Theravance Biopharma Inc.

Respiratory disease, bacterial infections and central nervous KY system pain pharmaceuticals developer, Respiratory disease, bacterial infections and central nervous system pain pharmaceuticals manufacturer

27/10/2016

4.

173

Capital Increase 12%

Puma Biotechnology Inc.

Cancer biopharmaceuticals manufacturer, Cancer treatment US biopharmaceuticals developer

18/10/2016

Acquiror

27/10/2016

5.

120

Capital Increase 20%

Ascendis Pharma A/S

Biotechnology research services

DK

19/10/2016

6.

100

Capital Increase 7%

Theravance Biopharma Inc.

Respiratory disease, bacterial infections and central nervous KY system pain pharmaceuticals developer, Respiratory disease, bacterial infections and central nervous system pain pharmaceuticals manufacturer

27/10/2016

7.

80

Capital Increase 20%

Collegium Pharmaceutical Inc.

Chronic pain treatment biopharmaceuticals developer, Chronic US pain treatment biopharmaceuticals manufacturer

25/10/2016

8.

76

Acquisition 100%

Abion Inc.

Biopharmaceuticals research and development services

KR

9.

52

Capital Increase 17%

Idera Pharmaceuticals Inc.

Cancer and orphan disease biopharmaceuticals developer

US

05/10/2016

10.

40

Minority stake

Miragen Therapeutics Inc.

Cardiovascular and muscle disease therapeutics research and US development services

BVIM LLC; Investors; Jafco Co., Ltd; Fidelity 31/10/2016 Management & Research Company; MP Healthcare Venture Management Inc.; Atlas Venture Advisors Inc.; Remeditex Ventures LLC; Brace Pharma Capital; MRL Ventures LLC

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NH Special Purpose Acquisition 8 Co., Ltd

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06/10/2016

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Monthly Biotech M&A Activity Report 2: Mergers, Acquisitions, Joint Ventures

Top 20 deals by value (Cont’d) Deal value (mil USD)

Deal type

Target

Target business description

Target country

11.

35

Capital Increase 39%

SIGA Technologies Inc.

Biotechnology research and development services

US

12.

34

Minority stake 7%

BioGaia AB

Probiotic pharmaceuticals manufacturer, Probiotic systems biotechnology research services

SE

13.

30

Capital Increase 9%

Immunomedics Inc.

Cancer monoclonal antibody-based biopharmaceuticals US manufacturer, Cancer monoclonal antibody-based biopharmaceuticals research and development services

05/10/2016

14.

28

Capital Increase 17%

Cidara Therapeutics Inc.

Immunotherapy biopharmaceuticals developer, Pharmaceutical products manufacturer

US

06/10/2016

15.

27

Capital Increase

GenoFocus Inc.

Enzyme products manufacturer

KR

Investors; Korea Investment Partners Co., Ltd; Nonghyup 27/10/2016 Bank; IBKC-SBI Bio Fund No. 1

16.

26

Capital Increase 8%

Newron Pharmaceuticals SpA

Central nervous system and pain therapy pharmaceutical IT research services, Central nervous system and pain therapy pharmaceuticals manufacturer

Institutional Investors

06/10/2016

17.

24

Acquisition 100%

Woojung BSC Inc.

Biotechnology research and development services

KR

Hanwha MGI Special Purpose Acquisition Co., Ltd

31/10/2016

18.

24

Capital Increase 9%

Crown Bioscience International Inc.

Cancer and metabolic disease-related drug development services holding company

KY

Employees; Investors

28/10/2016

19.

24

Minority stake 1%

BB Biotech AG

Biotechnology investment services

CH

Director

28/10/2016

20.

20

Capital Increase 30%

Midatech Pharma plc

Oncology and other therapeutics development services, GB Oncology and other therapeutics products manufacturer

Directors; Mr Rolf Stahel; Institutional Investors; Mr Jim Phillips; Woodford Investment Management LLP; Mr Rob Rainey

11/10/2016

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Announced date

Acquiror

21/10/2016 Old Mutual plc

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28/10/2016

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Monthly Biotech M&A Activity Report 2: Mergers, Acquisitions, Joint Ventures

Target countries by volume

Target countries by value

Target country

Oct-15

Sep-16

Oct-16

Target country

Oct-15 (mil USD)

Sep-16 (mil USD)

Oct-16 (mil USD)

US

45

68

41

US

656

1,884

768

Canada

7

9

6

Cayman Islands

0

0

324

South Korea

5

3

5

China

514

105

211

UK

4

11

4

South Korea

69

38

141

Sweden

1

1

4

Denmark

0

4

120

China

8

10

4

Sweden

10

15

47

Switzerland

0

3

4

Switzerland

0

16

30

Australia

2

6

3

UK

46

129

28

Cayman Islands

0

0

3

Italy

0

5

26

Belgium

1

0

2

Canada

33

29

14

Japan

1

5

1

Belgium

18

0

13

Italy

1

2

1

Australia

3

13

8

Russia

3

0

1

Norway

0

0

6

Norway

0

0

1

Japan

0

14

3

India

1

1

1

Malaysia

0

0

1

Denmark

0

2

1

Malaysia

0

0

1

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Monthly Biotech M&A Activity Report 3:IPOs

IPOs by volume and value Announced date

No of deals

Total deal value (mil USD)

Oct-16

2

2,056

Sep-16

3

337

Aug-16

2

102

Jul-16

1

57

Jun-16

4

172

May-16

1

157

Apr-16

4

225

Mar-16

0

0

Feb-16

5

18

Jan-16

7

393

Dec-15

5

122

Nov-15

0

0

Oct-15

4

250

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Monthly Biotech M&A Activity Report 3:IPOs

October IPOs Deal value (mil USD)

Deal type

Target

Target business description

Target country

Deal status

Announced date

1.

2,037

Planned IPO 25% on Korea Exchange

Samsung Biologics Co., Ltd

Biological products research and development services, Biopharmaceutical products manufacturer

KR

Pending

04/10/2016

2.

19

Planned IPO 27% on Nasdaq

Accelerated Pharma Inc.

Cancer treatment biopharmaceuticals developer, Cancer treatment biopharmaceuticals manufacturer

US

Announced

11/10/2016

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Zephyr Half Year M&A Report Notes to editors The search criteria uses a key word system based on the targets’ business description The key words and phrases are: “alternative energy” OR “alternative power” OR “biomass” OR “bioenergy” OR “bio energy” OR “bio-energy” OR “biofuel” OR “fuel cell” OR “hydrogen” OR “photovoltaic” OR “renewable energy” OR “reuseable energy” OR “re-usable energy” OR “solar” OR “waste to energy” OR “wind power” OR “wind farm” OR “wave power” OR “geothermal” OR “geothermal” OR “hydropower” OR “hydropower” OR “bio-diesel” OR “biodiesel” OR “energy resource management” OR “electric vehicle” OR “water purification” OR “intelligent power” OR “air quality” OR “energy efficiency” OR “thin film energy” OR “thin-film energy” OR “energy efficiency software” OR “energy storage” OR “battery power” OR “water treatment” OR “waste management” OR “biogas” OR “anaerobic digestion” OR “wastewater” OR “green construction” OR “green buildings” OR “smart meter” OR “smart grid” OR “energy monitoring” OR “marine energy” OR “solar thermal” OR “algae” OR “green energy” OR “cleantech” OR “clean tech” OR “environmental technology” OR “greentech” OR “charging station” OR “green infrastructure” OR “clean energy” OR “tidal power” OR “tidal energy” OR “biodegradable” OR “alternative fuel” Activity is based on the activity of the target company Deal status is announced, completed, pending or unconditional