RE:RE:RE:Merck USA (MSD) acquires Phase 2 biotech for US$ 10.8 Bln.Forget about the old thinking that one Phase 3 indication is worth just US$1 Billion, given the dramatically changing M&A landscape driven by the looming patent cliff and the push for novel biologics by both industry and government, a per the IRA.
Recent examples of M&A deals included pre-clinical companies like Trillium Therapeutics acqured by Pfizer for US$2.3 Billion; late-stage Phase 2 companies like Prometheus Biosciences being acquired by Merck for US$10.8 Billion; and Horizon Therapeutics acquired by Amgen for US$27.8 Billion, without ever licensing a drug on its own, just as several examples.
Recently GSK paid $2 Billion for Bellus Health, a single indication cough company.
ONCY has a platform technology that can be used in multiple cancers and multiple indications, with multiple I/O agents including PD-(L)1 immune checkpoint inhibitors, CAR-T therapy, bispecifics and antibody drug conjugates (ADC), and small molecules therapie like PARP and CDK 4/6 inhibitors.
Furthermore a US$10 Billion valuation for ONCY comfortably falls within Big Pharma's M&A 'sweet-spot' of between US$5 and US$15 billion for bolt-on assests like ONCY's platform technology pelareorep that would not be subject to an FTC review thus leading to a quick close for multiple Big Pharma companies looking to bolster their drug pipelines.
https://fortune.com/2023/04/13/horizon-therapeutics-drug-marketing-amgen-acquisition/