Sector News

Eli Lilly scouts smaller deals in immunology, cancer

January 15, 2018
Life sciences

Eli Lilly has tended to stay away from megadeals, and a big influx of cash from U.S. tax reform won’t change that.

Behemoth buys are the sorts of deals Darren Carroll, SVP of corporate business development, thinks will see the biggest boost as companies bring their overseas earnings home, and “those deals, frankly, we don’t believe are very helpful for shareholders on either side of the equation.”

“Every time we look at them, they just don’t make sense,” he said in a Tuesday interview at the J.P. Morgan Healthcare Conference, adding that “what they do is distract people.”

That’s not to say Lilly won’t benefit from the new legislation. On the contrary, a reduced corporate tax rate will make Lilly “much more competitive on a deal-by-deal basis,” Carroll said, and the Indianapolis drugmaker expects to put its new tax-rate parity to good use.

For starters, it is scouting opportunities to bolster its immunology pipeline behind psoriasis newcomer Taltz and baricitinib, an arthritis product that’s won global approvals but hasn’t yet snagged the FDA’s greenlight.

And “we will, on a very selective basis, look to act” in oncology as well, Carroll said. In pain management, an area where Lilly has built its entire pipeline through deals, “we think we’re in a great position to be a partner for companies,” he added.

Lilly may also come into cash if it goes through with an animal health divestment it’s currently weighing. Last October, it said it would evaluate options for that unit, Elanco, including a potential sale or spinoff.

Make no mistake though, Carroll said: Lilly doesn’t need the money.

“This is not a business that we have to sell,” he said, adding, “We’re not in any way, shape or form looking to divest because we’ve done something else that compels us to get the cash.”

The possibility of jettisoning Elanco arose from the fact that “capital allocation now is favoring the human side of things,” but Lilly could still very well decide to keep the unit. “We’re taking a very broad look … we’ll really know by the middle of this year, and we’ll be coming back to the market and letting people know,” Carroll said.

By Carly Helfand

Source: Fierce Pharma

comments closed

Related News

June 24, 2022

Echosens and Novo Nordisk announce partnership to increase awareness and advance early diagnosis of NASH

Life sciences

Echosens, a high-technology company offering liver diagnostic solutions, and Novo Nordisk A/S, a leading global healthcare company, announced a partnership to advance early diagnosis of non-alcoholic steatohepatitis (NASH) and increase awareness of the disease among patients, healthcare providers and other stakeholders.

June 24, 2022

argenx receives positive CHMP opinion for Efgartigimod for the treatment of adult patients with Generalized Myasthenia Gravis in Europe

Life sciences

Positive opinion based on Phase 3 ADAPT trial showing efgartigimod provided clinically meaningful improvements in strength and quality of life measures. If approved, efgartigimod will be the first neonatal Fc receptor (FcRn) blocker for the treatment of adults in Europe living with rare neuromuscular disease generalized myasthenia gravis (gMG).

June 24, 2022

Galapagos finally takes M&A plunge, spending $251M for 2 biotechs in CAR-T push

Life sciences

Galapagos CEO Paul Stoffels, M.D., has finally taken the plunge on M&A. The newly minted chief executive has signed not one but two deals in an attempt to right the ship, bringing two small biotechs aboard for a combined 239 million euros ($251.4 million).