Wrapup 1: Drugmakers kick off industry conference with two cancer deals

Axonics

08/01/2024 15:29

By Bhanvi Satija and Sriparna  Roy
       Jan 8 (Reuters) - Johnson & Johnson and Merck on Monday
announced plans to buy cancer therapy developers on the first
day of a major U.S. healthcare conference, igniting what
industry participants hope will be a strong year for deals after
a solid end to 2023.
    Deals announced on Monday had a combined equity value of
more than $6 billion, including one by medical device maker
Boston Scientific  BSX.N  for Axonics Inc  AXNX.O . That follows
roughly $25 billion worth of U.S.-listed biotech deals last
month, according to data provider LSEG Deals Intelligence. 
    Meanwhile, over 8,000 people are gathering at the JPMorgan
healthcare conference in San Franscisco, in another sign of a
return to business as usual after the COVID-19 pandemic.
    Global pharma companies' efforts to replace revenue from
older drugs with promising new ones were largely stymied in
2023, but looming patent expirations and easing financing costs
are setting up 2024 well, industry sources say.
    On Monday, J&J  JNJ.N  said it would buy Ambrx Biopharma
 AMAM.O  for $2 billion to gain promising targeted cancer
therapies known as antibody drug conjugates (ADC). 
    The deal gets "the ball rolling on what seems to be a strong
start for M&A in 2024", said Citi analyst Joanne Wuensch. 
    Interest in these drugs has spiked and several related
companies have been acquired in recent months, including
ImmunoGen  IMGN.O  by AbbVie  ABBV.N  and Seagen by Pfizer
 PFE.N .
    Separately, Merck  MRK.N  said it would buy cancer drug
developer Harpoon Therapeutics  HARP.O  for about $680 million,
gaining access to early-stage immunotherapies being tested for
lung cancer and multiple myeloma. 
    Boston Scientific's $3.7 billion deal for deal for Axonics
helps it enter the market for a type of  minimally invasive
procedure used in the treatment of overactive bladder and fecal
incontinence.
    Centerview Partners advised both Harpoon and Ambrx on the
deals. Ambrx's financial advisers also included Cantor
Fitzgerald. 
    Evercore Group was Merck's financial adviser, while J.P.
Morgan Securities LLC was the adviser to Axonics.
    
    

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ANALYSIS-Unloved healthcare stocks draw investors despite US
election risks     urn:newsml:reuters.com:*:nL1N3DT1EZ
Late M&A bonanza stokes healthcare dealmakers ahead of JPMorgan
conference     urn:newsml:reuters.com:*:nL1N3DV1NE
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 (Reporting by Khushi Mandowara and Sriparna Roy in Bengaluru;
writing by Manas Mishra. Editing by Sriraj Kalluvila)
 ((Manas.Mishra@thomsonreuters.com;
www.twitter.com/Manaswrites15;))