Sector News

Cancer drugmaker Tesaro weighs its options as wannabe buyers come running

February 9, 2017
Life sciences

Industry watchers have been predicting that cancer drugmaker Tesaro would generate M&A buzz. After all, growth-starved Big Pharma players have proven willing to shell out big bucks for prime oncology targets.

And now it has.

The Massachusetts biotech reportedly has attracted takeover interest from a slew of companies eyeing its potential blockbuster niraparib, according to unnamed sources cited by Reuters. Tesaro is discussing its options with investment banks, including Citigroup, though it’s not actually working toward a sale, the sources say.

The reason? The sizeable gap between bid and ask: Tesaro values itself at a much higher price than wannabe buyers currently do. So, for now, Tesaro is getting strategic advice, including tactics for handling its suitors.

That’s not to say the company wouldn’t sell, period. Clinical trial data set to read out this year on PARP prospect niraparib might help bring the parties closer together on price. The up-and-comer has already posted progression-free survival benefits larger than ever before seen in recurrent ovarian cancer, and EvaluatePharma forecast the drug would rake in $1.9 billion in 2022 sales.

The buyer interest is no surprise, considering the prices Big Pharma has paid over the last couple years to add drugs in the fast-growing cancer field. AbbVie, for one, forked over $21 billion for access to a piece of blood-cancer star Imbruvica, while Pfizer coughed up $14 billion for Medivation, maker of fellow PARP candidate talazoparib.

And while Pfizer may have locked up its PARP player with that Medivation buy, plenty of rival bidders lost out. Gilead Sciences was said to be one of them, and Guggenheim analysts last year predicted the California-based Big Biotech could find Tesaro enticing. Earlier this week, Gilead CEO John Milligan conceded that the company would need acquisitions to fuel growth as its hep C standouts plummet.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

March 24, 2024

Johnson Matthey to sell its Medical Devices business for $700 million

Life sciences

Johnson Matthey Plc (JM; London) announced that it has signed a definitive agreement to sell 100% of its Medical Device Components business (MDC) to Montagu Private Equity (Montagu) for cash consideration of US$700 million (£550 million) on a cash free debt free basis.

March 24, 2024

Lonza acquires biologics manufacturing plant in California from Roche

Life sciences

Lonza AG (Basel, Switzerland) announced it has signed an agreement to acquire the Genentech large-scale biologics manufacturing site in Vacaville, Calif. from Roche (Basel, Switzerland) for $1.2 billion. The acquisition will significantly increase Lonza’s large-scale biologics manufacturing capacity.

March 24, 2024

Roquette to acquire IFF Pharma Solutions to boost global excipient presence

Life sciences

Roquette plans to acquire International Flavors & Fragrances (IFF) Pharma Solutions for an enterprise value of up to €2.85 billion (US$3.09 billion). With the acquisition set to close in the first half of 2025, the plant-based ingredient and pharmaceutical excipients supplier aims to reinforce its position in the pharmaceutical industry.

How can we help you?

We're easy to reach