M&A Remains a Key Theme in Pharma as Global Giants Showcase Strong Buying Power

　　【Pharmaceutical Network Industry Dynamics】In the new year, "M&A" remains one of the key terms in the pharmaceuticals industry. Recently, M&A activities by multinational pharmaceutical companies have been frequent, with Johnson & Johnson, Eli Lilly, and GSK showing significant purchasing power, drawing widespread attention within the industry.
 

　　Johnson & Johnson: Proposed $14.6 Billion Acquisition of a Company
 

News on January 13: Johnson & Johnson announced that it has agreed to acquire Intra-Cellular Therapies, a biopharmaceutical company focused on treating central nervous system disorders, for nearly $14.6 billion. This acquisition will further solidify Johnson & Johnson's position in the market for drugs treating neurological diseases and enhance its R&D and sales capabilities in addressing psychological conditions such as bipolar disorder and schizophrenia.
 

Public information shows that one of Intra-Cellular Therapies' most valuable assets currently is the company’s psychiatric treatment drug Caplyta (lumateperone). In December 2019, Caplyta was initially approved by the U.S. FDA for the treatment of schizophrenia; in December 2021, the FDA again approved Caplyta as an adjunctive treatment for depressive episodes associated with bipolar I or II disorder. Additionally, Intra-Cellular is recently planning to expand the indications of Caplyta to include major depressive disorder.
 

Caplyta currently has no competitors in the U.S. market. Based on the promising outlook for market expansion, Intra-Cellular recently revealed to investors that Caplyta's sales in 2024 are expected to reach $665 million to $685 million.
 

According to reports, Johnson & Johnson expressed its focus on areas such as depression as early as 2013. At that time, the company planned to provide more than 20 new drugs and over 50 extended products by 2030, with applications covering diseases in multiple neuroscience fields, including but not limited to Alzheimer's disease, Parkinson's disease, and depression.
 

　　Lilly: Reached a Potential $2.5 Billion Acquisition Agreement
 

On January 14, Eli Lilly and Company planned to acquire Scorpion Therapeutics' experimental cancer therapy for ≤$2.5 billion in cash to expand its cancer treatment portfolio. The company also brought Scorpion's experimental oral therapy, STX-478, under its wing.
 

Public information shows that STX-478 is a once-daily, mutant-selective PI3Kα inhibitor currently undergoing Phase 1/2 clinical trials for the treatment of breast cancer and other advanced solid tumors. The drug has demonstrated positive preliminary results in clinical trials, particularly showing potent efficacy and the potential to become a best-in-class PI3Kα pathway inhibitor in the treatment of breast cancer and other solid tumors.
 

According to reports, oncology is one of the four key areas that Eli Lilly focuses on. The company's key product, abemaciclib, achieved full-year sales of $2.483 billion in 2022, a year-on-year increase of 83.98%. Meanwhile, its RET inhibitor selpercatinib and BTK C481S inhibitor pirtobrutinib have entered the commercialization stage, with both actively expanding into other indications. In addition, Eli Lilly’s oral SERD and KRAS G12C inhibitor are making active progress. The company has also targeted popular oncology areas such as PI3Ka and FGFR3.
 

　　GSK: Invests $1.15 Billion to Acquire a Candidate Drug
 

Also recently, GlaxoSmithKline (GSK) announced that it will spend $1.15 billion to acquire the U.S. biotechnology company IDRx. This deal includes a prepayment of $1 billion.
 

It is reported that IDRx is a clinical-stage biopharmaceutical company dedicated to developing precision medicines for the treatment of gastrointestinal stromal tumor (GIST). Its leading candidate drug, IDRX-42, is a highly selective KIT tyrosine kinase inhibitor being developed for first-line and second-line treatment of patients with gastrointestinal stromal tumor (GIST).
 

Currently, IDRX-42 has demonstrated activity against all key primary and secondary KIT mutants, designed to enhance treatment outcomes for GIST patients. With its broad mutation coverage and potentially improved tolerability due to high selectivity, IDRX-42 shows potential to become a "best-in-class" drug.
 

This deal will enable GSK to further expand its growing oncology portfolio, aligning with its approach to acquiring assets.
 

In fact, GSK has been expanding its oncology business in recent years to counteract the decline in its vaccine sector, including deals with Hansoh Pharma and Sierra Oncology, which have yielded some returns. The 2024 Q3 financial report shows a slight increase in GSK's total revenue, with strong sales in oncology and HIV drugs. Notably, the oncology drug Ojjaara performed exceptionally well, driving a 19% growth in specialty medicines revenue.
 

Disclaimer: In no event shall the information or opinions expressed in this article constitute investment advice to any person.