Pharma’s Culture Clash And Financial Pressures
Financial news dominates reports from the pharmaceutical industry--mergers and initial public offerings.
Sanofi, Aiming To Speed MS Treatment, To Acquire Principia Biopharma
Sanofi said Monday that it is acquiring Principia Biopharma for $3.68 billion, giving the French drug giant full control over the multiple sclerosis treatment the companies share. The deal values Principia at $100 per share, a 10% premium over the company’s closing price Friday, but represents a 35% premium to the price of Principia stock on July 15. (Herper, 8/17)
J&J Invests In Thirty Madison, Renewing Pharma’s Interest In Health Tech
Late last year, several high-profile partnerships between big pharma companies and health tech startups fell apart — raising questions about whether culture clash and financial pressures would doom such alliances. But in the months since, pharma’s interest in businesses trying to rethink how people get their medications has proved resilient. The latest sign of that came on Friday: Johnson & Johnson’s innovation arm will make an investment in Thirty Madison, the company offering telemedicine visits and online prescriptions for drugs for hair loss, migraines, and acid reflux. (Robbins, 8/14)
CureVac Becomes Latest Vaccine Manufacturer To See Its Value Soar
The developer of a vaccine for Covid-19 saw its share price nearly triple within hours of an initial public offering Friday, the latest example of how the coronavirus crisis has dramatically increased investor demand for biotech stocks. CureVac, headquartered in Germany, raised about $213 million by pricing shares at $16 each. The company’s share price immediately rose to $44, boosting its valuation to roughly $8 billion. CureVac now trades on the Nasdaq under the symbol “CVAC.” (Garde, 8/14)