< PreviousM&A ROUND-UP 10 Pharma Business International www.pbiforum.net M&A is a staple to pharmaceutical companies’ growth plans. As an industry with a slower pace of innovation, many essential, major deals have been seen in the past, yet the last few years have produced limited big-ticket transactions. However, with analysis from McKinsey indicating that the top 12 biopharma companies had more than $290 billion in cash available to invest at the end of 2022 (almost double their pre-COVID-19 levels), patent cliffs on the horizon, and lower prices of many potential targets due to the recent market downturn, accelerated dealmaking may be ahead, exemplified by the recent announcement of the largest pharma acquisition for years. Pfizer - Seagen Revealed in March was the long- awaited acquisition of Seagen, tipped to signal a rebound in M&A activity for big pharma, following Amgen’s $28.3 billion deal for rare diseases biotech Horizon Therapeutics at the end of 2022. Pharma giant Pfizer has swooped for the oncology biotech Seagen in a $43 billion deal, which looks as though it could stay in place in 2023 as the largest transaction of the year. “Pfizer is deploying its financial resources to advance the battle against cancer, a leading cause of death worldwide with a significant impact on public health,” said Dr. Albert Bourla, Pfizer chairman and Chief Executive Officer. “Together, Pfizer and Seagen seek to accelerate the next generation of cancer breakthroughs and bring new solutions to patients by combining the power of Seagen’s antibody-drug conjugate (ADC) technology with the scale and strength of Pfizer’s capabilities and expertise. Oncology continues to be the largest growth driver in global medicine, and this acquisition will enhance Pfizer’s position in this important space and contribute meaningfully to the achievement of Megadeals ready to return? Pharma Business International highlights some key acquisitions that have taken place since our last issue. Pfizer’s near- and long-term financial goals.” Seagen is a pioneer in ADC technology, with four of the twelve total FDA-approved and marketed ADCs using its technology industry-wide. The company anticipates generating approximately $2.2 billion of revenue in 2023, representing 12% year- over-year growth, from its four in-line medicines, royalties and collaboration and license agreements. When combining the expected strong growth trajectories for 10-13.qxp_Layout 1 12/04/2023 08:51 Page 1Pharma Business International 11 www.pbiforum.net M&A ROUND-UP Sanofi - Provention Bio Further recent deals also suggest an uptick in major transactions, with Sanofi’s acquisition of Provention Bio, a biopharmaceutical company focused on immune-mediated diseases including type 1 diabetes, for $2.9 billion. The transaction adds an innovative, fully owned, first-in-class therapy in type 1 diabetes to Sanofi’s core asset © stock.adobe.com/ cbies 12 Á these medicines with candidates that could emerge from Seagen’s pipeline, subject to clinical trial and regulatory success, Pfizer believes Seagen could contribute more than $10 billion in risk-adjusted revenues in 2030, with potential significant growth beyond 2030. “Pfizer shares our steadfast commitment to patients, and this combination is a testament to the passion, dedication and talent of the Seagen team to achieve our mission to discover, develop, and commercialize transformative cancer medicines that make a meaningful difference in people’s lives,” said David Epstein, Seagen Chief Executive Officer. “The proposed combination with Pfizer is the right next step for Seagen to further its strategy, and this compelling transaction will deliver significant and immediate value to our stockholders and provide new opportunities for our colleagues as part of a larger science-driven, patient-centric, global company.” 10-13.qxp_Layout 1 12/04/2023 08:51 Page 2© stock.adobe.com/ Rokas M&A ROUND-UP 12 Pharma Business International www.pbiforum.net portfolio in General Medicines and further drives its strategic shift toward products with a differentiated profile. TZIELD (teplizumab-mzwv) was approved in the U.S last year as the first and only therapy to delay the onset of Stage 3 type 1 diabetes (T1D) in adults and pediatric patients aged 8 years and older with Stage 2 T1D. Olivier Charmeil, executive vice president, General Medicines, Sanofi, said: “The acquisition of Provention Bio builds on Sanofi’s mission to deliver best- and first-in-class medicines and resonates with our purpose of chasing the miracles of science for the benefit of people. By coupling Provention Bio’s transformative innovation with Sanofi’s expertise, we aim to bring life-changing benefits to people at risk of developing Stage 3 type 1 diabetes. Any additional indications, approvals and pipeline assets only serve to further our excitement. Given our existing partnership and complementary work in the diabetes and immunology spaces, we foresee a seamless integration and execution.” Sartorius - Polyplus Another substantial swoop has seen life science group Sartorius, through its French listed subgroup Sartorius Stedim Biotech, sign an agreement to acquire Polyplus for approximately 2.4 billion euros from private investors including ARCHIMED and WP GG Holdings IV B.V., an affiliate of Warburg Pincus. Polyplus develops and produces transfection as well as other DNA/RNA delivery reagents and plasmid DNA in high quality and GMP grade. These are key components in the production of viral vectors used in cell and gene therapies and other advanced medicinal therapeutic products. 10-13.qxp_Layout 1 12/04/2023 08:51 Page 3Pharma Business International 13 www.pbiforum.net M&A ROUND-UP © stock.adobe.com/ peopleimages.com “The innovative solutions of Polyplus are highly complementary to our portfolio, in particular to our offering of cell culture media and critical components for the development and manufacture of advanced therapies, and there are also strong synergies with our portfolio of downstream solutions for the manufacture of gene therapeutics,” said René Fáber, member of the Executive Board and head of the Bioprocess Solutions division of Sartorius. “In the dynamically growing market for cell and gene therapies, viral vectors are needed to deliver the genes of interest into cells. The development pipeline of such therapies has been growing strongly and more and more are reaching major milestones. As a leading supplier of critical components to produce cell and gene therapies, Sartorius and Polyplus together will be excellently positioned to play a significant role in this dynamic field.” 10-13.qxp_Layout 1 12/04/2023 08:51 Page 4TRANSPORT & LOGISTICS © stock.adobe.com/ BotTastic The question The question 14 Pharma Business International www.pbiforum.net 14-17.qxp_Layout 1 12/04/2023 08:52 Page 1Pharma Business International 15 www.pbiforum.net TRANSPORT & LOGISTICS F ossil fuels remain a thorny subject for many, especially in a time when economies are doing poorly and it’s tempting to reach for the quickly profitable fossil fuels over long-term investments. The transport and logistics industries have been struggling with the problem of green transport for a long time now. The technology has been there for a while, but while the consumer demand for greener method has only grown stronger, wholesalers and retailers have been so unwilling to consider paying higher costs that fleet managers haven’t been able to invest. The simple factor is that costs would have to go up to cover changing a whole fleet to greener methods, but big supermarkets would rather guard their profits. This is reflected in reports that freighters have been offering a range of environmentally friendly options, but that shippers are balking at the procurement stage. Sustainability is positively talked about in all areas that might reach marketing or be seen by the public, but the interest falters as soon as shippers are faced with a choice between sustainable fuels or cheaper, more environmentally damaging, alternatives. Inevitably, profits are prioritised. One of the largest couriers, DHL, provided a target of spending 7 billion euros on sustainable measures and decarbonisation by 2030, but has only spent 440 million euros so far. While DHL themselves blamed the slow uptake on a lack of measures, those in the logistics industry have said the fault lays more on an unwillingness to spend, and customers’ willingness to pay a premium for sustainable transport. Many transport companies are calling on governmental support to further push the issue, but the true need the industry faces might be in greater scrutiny on supermarkets and retailers who are happy to claim they are doing all they can to decarbonise, but at the same time refuse to deal fairly with their logistical suppliers. These companies are unlikely to budge for anything but a threat to their reputations and profits. The industry faces greater challenges than just environmental, however. Rising fuel costs have also impacted earnings and left many in a precarious state of needing their existing contracts so badly that they cannot afford to take risks pushing sustainable alternatives or higher costs. At the same time, freight forwarders are struggling under recruitment issues of their own, with transport and logistics reporting high levels of job vacancies in specialist jobs from dock working, to warehouse operatives and HGV drivers. Pharmaceutical manufacturers are being encouraged to focus on sustainability wherever possible, and that may mean embracing a willingness to adopt more expensive measures in the transport and logistics of pharma products. 16 Á 14-17.qxp_Layout 1 12/04/2023 08:52 Page 2TRANSPORT & LOGISTICS 16 Pharma Business International www.pbiforum.net With competition for new drivers rising and existing ones growing closer to retirement, attention is turning toward the next generation – who, by all accounts, have poor understanding of what it means to be a lorry driver, and even poorer perceptions of it. Hollywood depictions of HGV drivers as slimy, overweight men certainly haven’t helped, and with how much of today’s world is influenced by social media and Instagram, it has to be said that the job of a lorry driver is not seen as particularly desirable. More must be done to bridge the gap between the industry and younger people, because it is in fact a well-paying job involving a lot of travel, and it’s certainly not low-skilled. Finding new drivers wouldn’t be such a problem if it was. While logistics firms are doing their best to lobby to younger audiences to try and get more people interested in the industry, it’s hard to know how effective this has been. Shocking new research published nationally suggested that 25% of young people feel they are not prepared to enter the workforce, up to and including having no idea what they want to be. While it’s naïve to say that is 25% of young people the logistics industry can be targeting, they can at least aim for a portion of that number. The fact is that school visits and talks to students won’t do anything to change minds. It didn’t when we were younger and won’t now. Children will see it as a free day from lessons and that alone. To really make a difference it may be more important to talk to people of the age of 14-16, and stress real-world things like the pay, the work, and the opportunities – and then to get them interested by offering to involve them in operations and let them see first- hand what the job will entail. All too often is “reaching out to the youth” seen as something one does maybe once per generation, standing in front of a class of distracted children and talking about things they can’t really grasp and haven’t had to think about yet. On the other hand, there is another easily accessible demographic in female workers. Women are woefully underrepresented in the logistics sector and aiming to make the workforce more inclusive for them is not just to meet goals of inclusivity, but to open up a pool of new recruits. There is obviously a lot of work to be done, but the recruits are there if people can only improve on reaching them. Perhaps what the sector means when it says, “there is no one to hire” is more “it’s harder to find the people I could hire.” 14-17.qxp_Layout 1 12/04/2023 08:53 Page 3Pharma Business International 17 www.pbiforum.net TRANSPORT & LOGISTICS © stock.adobe.com/ GustavsMD 14-17.qxp_Layout 1 12/04/2023 08:53 Page 4LABELLING, CODING AND MARKING 18 Pharma Business International www.pbiforum.net The right tool for the job © stock.adobe.com I Viewfinder Labels, coding and marking have long served to inform users of the directions and warnings of a given drug, but now they are also being employed in the unending fight between manufacturers and counterfeiters. 18-21.qxp_Layout 1 12/04/2023 08:54 Page 1Pharma Business International 19 www.pbiforum.net LABELLING, CODING AND MARKING © stock.adobe.com/ Elenathewise A rise in counterfeit drug production and copy-cat drugs has driven many brands to look at ways to use labelling, coding and marking to limit opportunities for criminals to masquerade products as part of their brand. As technology advances however, so too do the tools at the hands of such criminals, who often field technology just as expensive and technical as manufacturers themselves. After all, criminal markets aren’t held back by taxes, wage costs and the like. Keeping one step ahead of the game is therefore the goal, but it is a difficult task at the best of times. Track and trace technology has emerged as one of the biggest advances in the battle against counterfeit products and as a means of strengthening the supply chain. A track and trace system works by printing a 20 Á 18-21.qxp_Layout 1 12/04/2023 08:54 Page 2Next >