IHS Global Insight Perspective | |
Significance | Takeda's acquisition of IDM Pharma is to see its oncology portfolio expanded with the U.S. firm's osteosarcoma treatment Mepact. On the other hand, Shionogi can benefit from Victory Pharma's pain relief products. |
Implications | Through the IDM acquisition, Takeda is making one more move to grow within the oncology field following its acquisition of Millennium. For Shionogi, Sciele's purchase of Victory Pharma is in line with its focus on the pain-management market. |
Outlook | More overseas acquisition moves of Japanese drug makers are likely to follow in their bids of expanding their product portfolio and overseas presence. |
Takeda to Acquire IDM Pharma, Expand Oncology Portfolio with Mepact
Japanese drug heavyweight Takeda and U.S. oncology-focused biomedical pharma company IDM Pharma have agreed that Takeda's U.S. unit Takeda America is to acquire IDM Pharma and add the U.S. firm's leading product, osteosarcoma drug Mepact (mifamurtide) into its oncology portfolio. Takeda is to make an all-cash tender offer of US$2.64 per share for IDM's 25.3 million outstanding shares, which will bring the total offer value to US$66.7-million. According to the companies, the acquisition transaction is expected to complete in June 2009 and no later than 22 July 2009.
Following the acquisition, Takeda's U.S. oncology subsidiary Millennium will assume the global development of IDM's Mepact and Takeda Europe is to commercialise the drug in Europe. Designated orphan drug status in Europe in 2004, Mepact was approved in Europe for the treatment of non-metastatic, resectable osteosarcoma in March 2009. It has been the first approved drug in over two decades to treat osteosarcoma, a rare and often fatal bone tumour that typically affects children and young adults. During its Phase III clinical studies, the largest ever completed in osteosarcoma with about 800 patients, Mepact demonstrated a 30% decrease in death risk when combining with chemotherapy.
Sciele to Enter US$150-mil. Victory Acquisition Deal
Announced on the same day, medium-sized Japanese drug maker Shionogi's U.S. subsidiary Sciele has agreed to acquire U.S. firm Victory Pharma, which specialises in pain treatment. Sciele will pay US$150 million for the deal, which is expected to close in the second quarter of 2009.
In 2008, Victory Pharma's net sales stood at US$57 million with pain products as its main focus led by Naprelan (naproxen sodium). Indicated for the treatment of rheumatoid arthritis, osteoarthritis, ankylosing spondylitis, tendonitis, bursitis and acute gout, Naprelan is also indicated in the relief of mild to moderate pain and the treatment of primary dysmenorrhea.
Outlook and Implications
The two deals have once more highlighted the Japanese drug makers' strategy of overseas expansion through acquisitions with specific focus on the U.S. market. In fiscal year (FY) 2008/09 ended 31 March, overseas acquisitions played significant roles in Japanese drug firms. Takeda acquired U.S. oncology-focused firm Millennium and re-acquired its joint venture with Abbott (U.S.), TAP Pharma. Eisai's new purchase, MGI Pharma, contributed strong sales increases in oncology drugs with anti-emetic treatment Aloxi (palonosetron) and hypomethylating agent Dacogen (decitabine). In terms of Shionogi, Sciele was acquired during the same period.
Takeda has made it clear that the oncology field is to be a main growth area of the company following its US$8.8-billion acquisition of Milennium. In addition to the commercialisation of Mepact in Europe, it is likely to accelerate the pace of the drug's development in other main markets such as the United States and Japan. In Japan, Takeda is also aiming to roll out its colorectal cancer drug Vectibix (panitumumab) by next year.
That said, both deals are still subject to certain conditions at this stage. In addition to customary closing conditions, Takeda's acquisition is subject to the tender of a majority of IDM Pharma shares and Sciele's Victory deal is subject to clearance under the Hart-Scott-Rodino Antitrust Improvement Act. Nevertheless, IHS Global Insight is expecting more overseas acquisitions to follow for Japanese drug makers including Astellas, which launched an unsuccessful hostile bid for U.S. company CV Therapeutics.