Oncolytics Biotech Inc T.ONC

FTC blockage of Amgen's US$28 BLN takeover of Horizon

[Noteable]

Positive news for ONCY given that its acquisition does pose a conflict of interest for any acquirer like Pfizer who will be looking for an uncomplicated business deal. Pfizer's US$43 Billion proposed acquistion of Seagen is currently before the FTC, and may unfortunately result in the same "thumbs-down" decision that Amgen experienced.

"The FTC has promised to look beyond standard product overlaps when evaluating proposed biopharma transactions". 

The message being sent is that smaller "bolt-on" acquisition deals between US$5 to US$15 Billion may what will be happening going forward, which is where ONCY is positioned. 

https://www.fiercepharma.com/pharma/ftc-prepares-block-amgens-28b-horizon-buy-broadly-negative-move-biopharma-ma-report

[Noteable]

Should read: Positive news for ONCY given that its acquisition does NOT pose a conflict of interest for any acquirer 

[Noteable]

William Blair analyst Matt Phipps, Ph.D argues that Amgen desperately needs those additional assets to drive revenue growth given how its existing portfolio has struggled. William Blair's Phipps arguement supports the long standing observation that Big Pharma is faced with a looming patent cliff and needs to fill its pipeline with new product assets to drive revenue growth.  ONCY

[Noteable]

The Amgen/Horizon situation confirms that overlaps are no longer the only driver of FTC scrutiny.. Given the FTC's focus, biotech analysts are in agreement that "bolt-on deals were not really considered to be in the FTC’s sights, though a long delay to Roche's takeover of Spark first raised such fears; today's surprising development could confirm such a trend." https:/

[westcoast1000]

Hello Noteable, In my view, the aquisition of ONCY by any company should not really pose a threat to competition in specific markets (which would attract anti-trust attention). That is because we have no sales at present, and no other company has the same kind of viral treatment. If we were to be bought by some company that already owned all or most of the other oncolytic viruses, that might be

[Noteable]

westcoast - your observation is the essence of a "bolt-on" acquisition that Big Pharma companies are increasingly interested in conducting given today's M&A environment. Also the lack of an anti-competitive perspective in the review of such a transaction is further driving Big Pharma's motivation. Furthermore, the succesful completion of Pfizer US$43 Billion acquisition of

[Noteable]

May 17, 2023 - "Thawing of interest in mega-deals would invariably shift consolidation focus to smaller and earlier-stage biotech companies – and more of them," Evercore analysts said in a note.

[Noteable]

Pfizer has raised US$31 Billion in a debt offering that occurred May 19, 2023, on the prospect of the completion of the US$43 Billion acquisition of Seagen.  Should Pfizer's acquistion for Seagen not move forward or close on an agreed upon date, Pfizer will return the debt offering 'notes' to the investors, except for the 10 year and 30 year 'notes' that total US$11

[Noteable]

Repost - May 17, 2023 - "Thawing of interest in mega-deals would invariably shift consolidation focus to smaller and earlier-stage biotech companies – and more of them," Evercore analysts said in a note.

[Noteable]

May 25, 2023 - The timing here is critical for Amgen and its Big Pharma peers who face a wave of patent cliffs in coming years that will require M&A to make up for lost revenue. Between $200 billion to $300 billion is at risk before 2026 due to blockbuster biologics losing their market exclusivity, according to EY estimates.  “It couldn’t come at a worst time,” Ural said. “We have

[Noteable]

In January 2023 Senator Warren mentioned that relatively few leading drugs have been developed within large pharmaceutical companies, which preceeded the FTC's decision to block mega-mergers between two major companies with pricing power, such as the Amgen/Horizon merger.  The most likely result here may be a rising shift away from acquirers' recent predilection for revenue

[Noteable]

FTC takes tougher approach on Mega-Mergers  In recent years, the Federal Trade Commission (FTC) allowed drug industry mergers to move forward so long as the companies divested any overlapping treatments. Even then, it didn’t often demand adjustments. A Bloomberg Law analysis found that the FTC imposed conditions on less than one-third of the 38 pharmaceutical deals valued at $10 billion or

[Noteable]

“Relatively few leading drugs have been developed within the largest pharmaceutical companies,” Khan said. The FTC's position on drug development concerning the largest pharmaceutical companies gives whatever BP acquirer of ONCY's Phase 3 product indication portfolio the opportunity to take pelareorep in-house and develop pelareorep as its own. Such an acquisition of ONCY's pelareorep

[fox7mf]

Thursday May 25th marks the beginning of the end of Oncy as it's own entity. The march up to a $10b+usd valuation gets underway. Good luck fine peeps. 

[Noteable]

September 01, 2023 - FTC clears Amgen's US$28 BLN takeover of Horizon. After months of legal wrangling, Amgen is free to go forward with its $27.8 billion buyout of Horizon Therapeutics. With Amgen ultimately cleared to buy Horizon, the industry will likely celebrate the result. This, in turn, could prompt pharma's dealmakers to give large buyouts more consideration. Amgen and

[Noteable]

Once the acquisition wraps — expected in the fourth quarter — Amgen won't be able to condition any product rebate or contract terms related to an Amgen product on the sale or positioning of either one of the Horizon drugs. Amgen also won't be allowed to acquire any new products that treat thyroid eye disease or chronic gout without FTC permission. https://www.investors.com/news/technology

[Noteable]

Now its time for ONCYs potential acquirer to “think big, move towards a quick approval and scale fast.”