Record Levels of Available Cash and Moderate R&D Development Will See Big Pharma M&A Activity Increase in 2013
Five Star Equities Provides Stock Research on Nektar Therapeutics and Santarus
NEW YORK, NY -- (Marketwire) -- 01/16/13 -- Lost revenues from expiring patents has played a major part in the Biotech Industry's success in recent years. A total of 676 takeovers of biotechnology and pharmaceutical companies have occurred in the past three years, with an average premium of 38 percent, according to data collected by Bloomberg. Five Star Equities examines the outlook for companies in the Biotech Industry and provides equity research on Nektar Therapeutics (NASDAQ: NKTR) and Santarus, Inc. (NASDAQ: SNTS).
At the end of the third quarter five of the biggest drug makers in the U.S. held over $70 billion in cash, near cash and short-term investments. Major revenue losses from patent expirations have forced big pharmaceutical companies to look to biotech companies to help fill the void. Pfizer's Lipitor and Bristol-Myers' Plavix, which lost exclusivity in late 2011, had combined annuals revenues of $17 billion at their peaks.
"We're through many cost-cutting programs, restructurings and portfolio arrangements," said Henry Gosebruch, Managing Director, Mergers & Acquisitions J.P. Morgan. "When you put that together with record levels of cash available and improving, but still moderate R&D productivity, we think there will be more big pharma M&A activity in 2013."
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Nektar Therapeutics has a robust R&D pipeline of potentially high-value therapeutics in oncology, pain and other therapeutic areas. Nektar's technology has enabled eight approved products in the U.S. or Europe through partnerships with leading biopharmaceutical companies. Shares of the company have gained over 40 percent in the past year.
Santarus is a specialty biopharmaceutical company focused on acquiring, developing and commercializing proprietary products that address the needs of patients treated by physician specialists. The company recently reported their treatment for chronic inflammatory bowel disease, UCERIS, has been approved by the FDA.
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