Top Pharma Acquisitions Looking at Closure in 2024

In 2023, the pharma sector emerged as a pivotal player poised for further evolution and transformative shifts in the year ahead. Stepping into 2024, the pharmaceutical landscape stands at the precipice of transformation, driven by a convergence of key factors reshaping the industry.

The first quarter of 2024 witnessed several acquisitions, while many of the deals from 2023 are still awaiting closure. Let’s now take a closer look at the pharmaceutical deals that we anticipate will be finalized by 2024.

But first, let’s gain an understanding of the current scenario of the industry.

Brief Industry Overview

For 2024, the pharma industry is expected to bring transformative shifts driven by key growth drivers including rising affordability, increasing access, low cost of production, and government support.

Till now, this year, the industry has witnessed several drug launches spanning neuroscience, endocrinology, oncology, rare diseases, and chronic blood disorders. Moreover, there have been several notable industry collaborations as well

On another front, Prime Minister Modi unveiled an Advanced Level Research Centre aimed at bolstering the pharmaceutical sector. However, amidst these developments, the industry faced challenges with the introduction of the Government’s Uniform Code for Pharmaceutical Marketing Practices, which brought forth several guidelines. Furthermore, the controversy surrounding e-pharmacies has added to the complexity of the situation.

In a notable turn of events, 30 pharmaceutical and healthcare companies made headlines by purchasing electoral bonds worth over INR 900 Cr.

Pharma Acquisitions to Close in 2024

AstraZeneca’s Acquisition of Fusion Pharmaceuticals

Global pharmaceutical giant AstraZeneca acquired Fusion Pharmaceuticals, a clinical-stage biopharmaceutical company developing next-generation radioconjugates (RCs) for cancer treatment.

The total transaction value is approximately $2.4 billion. This includes a price of $21.00 per share in cash at closing plus a non-transferable contingent value right (CVR) of $3.00 per share, payable upon the achievement of a specified regulatory milestone.

The definitive agreement for the acquisition was entered into on March 19, 2024. The acquisition aims to accelerate the development of next-generation radio conjugates for cancer treatment and is expected to close this year. The acquisition also strengthens AstraZeneca’s presence in and commitment to Canada.

Eris Lifesciences Acquired Biocon Biologics’ India Branded Formulation Biz for INR 1,242 Cr

Ahmedabad-based Eris Lifesciences acquired the domestic branded formulation business of Biocon Biologics Ltd for INR 1,242 Cr. This acquisition also marked Eris’ entry into oncology and critical care and is expected to become a leading player in the Insulins segment.

This strategic move aims to expand Eris's presence in the Indian market and venture into the lucrative injectables segment, valued at over INR 30,000 Cr. The deal, financed through debt, is expected to be finalized by April 15, 2024, subject to customary closing conditions.

Novo Boosting its Portfolio

Novo Nordisk Bought Cardior Pharmaceuticals for €1 Bn+

The Danish pharmaceutical major, Novo Nordisk bought Cardior for up to 1.025 billion euros, including an upfront payment and additional payments if certain development and commercial milestones are achieved.

This move seeks to strengthen Novo Nordisk’s pipeline of projects in cardiovascular disease. The acquisition is subject to receipt of applicable regulatory approvals and other customary conditions and is expected to close in the second quarter of 2024.

Novo Nordisk’s Purchase Agreement for Catalent

Apart from Cardior, Novo Nordisk also acquired Catalent, a global contract development and manufacturing organization for $16.5 billion. Per the deal, Novo Holdings is expected to take over all outstanding shares of Catalent for $63.50 per share in cash.

Further, the merger is expected to close towards the end of the calendar year 2024, subject to customary closing conditions, including approval by Catalent stockholders and receipt of required regulatory approvals.

GSK Acquired Asthma Drug Owner Aiolos for up to $1.4 Bn

British Drugmaker GSK Plc acquired US biotech Aiolos Bio Inc, an asthma drug maker, in a deal worth up to $1.4 billion. This includes an upfront payment of $1 billion and up to $400 million in success-based regulatory milestone payments.

This acquisition is part of GSK’s strategy to boost its growing respiratory diseases portfolio. The deal entered in the earlier stages of the year is also expected to be finalized this year.

Indian Pharma’s Overseas Deal

Dr Reddy's Acquired 6.5% Stake in Israeli Biotech Company Edity

Indian pharmaceutical giant Dr Reddy's Laboratories, through its wholly-owned subsidiary Dr Reddy’s Laboratories, acquired a nearly 6.5% stake in the Israeli development-stage biotech player Edity for a cash consideration of $2 million.

Reportedly, the Hyderabad-based pharma picked up 10,14,442 preferred A-1 shares, equivalent to 6.46% of Israel-based Edity's share capital on a fully diluted basis, for $1.9715 per share, by way of conversion of SAFE (simple agreement for future equity).

The deal was signed in December and is expected to close this year.

Sun Pharma’s Buying Spree

Sun Pharma Acquired Israel’s Taro Pharma in a Deal Worth $347.73 Mn

Indian drugmaker Sun Pharmaceutical, through its wholly-owned subsidiary, acquired a 6.46% stake in Taro Pharmaceuticals, an Israeli development-stage biotechnology company.

As per the merger deal, Sun Pharma agreed to acquire all outstanding ordinary shares of Taro Pharmaceutical which were not earlier owned by the company or its affiliates for $347.73 million, which is approximately INR 2,891.76 Cr, in cash.

The deal entered on January 17th is expected to close by the end of 2024.

Sun Pharma Acquired 16.33% Stake of Surgimatix for $3.05 Mn

The pharma company also acquired a 16.33% stake in Michigan-based Surgimatix for $3.05 million. The drugmaker revealed on February 20 through a disclosure to the exchanges.

By investing in Surgimatix, Sun Pharma aims to enhance its portfolio and contribute to advancements in healthcare technology. The transaction is expected to be completed by the first quarter of 2024, subject to the fulfillment of certain conditions.

Some Exciting Deals On the Way

Cipla, Torrent Pharma, Eris Lifesciences, & JB Chemicals

These pharmaceutical powerhouses are expanding their chronic disease product lines, introducing innovative therapies, and investing in capital expenditures to fortify active pharmaceutical ingredient (API) production.

These pharmaceutical giants might pursue further acquisitions as part of their strategic expansion plans, aiming to broaden their market reach and solidify their positions within the industry.

Big Pharma Cos in the Bidding Race to Acquire Healthium

Moreover, recently, Mankind Pharma joined the race to acquire Healthium Medtech, a leading player in the medtech field. Reportedly, Mankind Pharma and ChrysCapital are jointly evaluating the purchase of the company and forming a consortium. Novo Nordisk has also been mentioned among the interested parties.

If it goes through, it would be a significant deal, given Healthium's robust global presence. Moreover, it presents an opportunity for the pharmaceutical company to tap into the lucrative surgical supplies market. The expected valuation for Healthium Medtech stands at around $1 billion.

Refueling Cipla Deal

Last year, there was a major buzz surrounding the country’s third-largest drug maker being acquired by its biggest rival Torrent Pharmaceuticals.

Despite numerous reports confirming discussions about the deal, no agreement was reached. However, there is now speculation that the deal could be reignited.

As we anticipate the closure of these acquisitions, it will indeed be intriguing to witness what surprises lie ahead in the ever-evolving pharmaceutical landscape.