Sanofi to acquire Synthorx for $2.5bn

BY Richard Summerfield

French drugmaker Sanofi has agreed to acquire biotech firm Synthorx in an all cash deal worth $2.5bn.

Under the terms of the deal, Sanofi will buy the outstanding shares of Synthorx common stock for $68 per share in cash, a 172 percent premium to Synthorx’s closing price on 6 December 2019. Sanofi expects to complete the acquisition in the first quarter of 2020.

The deal will strengthen Sanofi’s position in the increasingly lucrative and competitive oncology market. Synthorx specialises in treatments prolonging and improving the lives of cancer patients or those with auto-immune disorders. The company is developing immuno-oncology therapies which aim to mobilise the body’s immune system to fight cancer cells.

“This acquisition fits perfectly with our strategy to build a portfolio of high-quality assets and to lead with innovation,” said Paul Hudson, chief executive at Sanofi. “Additionally, it is aligned with our goal to build our oncology franchise with potentially practice-changing medicines and novel combinations.”

“Synthorx’s exceptionally novel discovery platform has already produced a molecule that has the potential to become a foundation of the next generation of immuno-oncology combination therapies,” said John Reed, global head of research & development at Sanofi. “By selectively expanding the numbers of effector T-cells and natural killer cells in the body, THOR-707 can be combined with our current oncology medicines and our emerging pipeline of immuno-modulatory agents for treating cancer. Moreover, Synthorx’s pipeline of engineered lymphokines has great promise not only for oncology but also for addressing many autoimmune and inflammatory diseases.”

“We are grateful that Sanofi has acknowledged the value of our Expanded Genetic Alphabet platform and the potential of our pipeline of optimised therapeutics for cancer and autoimmune disorders,” said Laura Shawver, president and chief executive at Synthorx. “Importantly, Sanofi has a portfolio of therapeutics that holds incredible promise for combining with our cytokine Synthorins to benefit patients around the world. I want to thank our employees and the Sanofi organization for their relentless efforts on behalf of patients.”

News: France’s Sanofi to buy biotech firm Synthorx for $2.5 billion

Astellas and Audentes agree $3bn merger

BY Richard Summerfield

Tokyo-based drug maker Astellas Pharma is to buy Audentes Therapeutics in a deal worth $3bn. Under the terms of the deal, Astellas will acquire Audentes through Asilomar Acquisition Corp, a wholly-owned subsidiary of Astellas US Holding, Inc. Audentes shareholders will receive $60 per share in cash, a 110 percent premium to the company’s closing price on Monday.

Astellas expects the deal, which is subject to regulatory approvals including US antitrust clearance, to close in the first quarter of 2020.

The deal for Audentes will add a fifth core area of focus for Astellas. In 2018, Astellas reorganised around four focus areas – regenerative, immuno-oncology, immunotherapy, and neuro-muscular medicine. The acquisition of Audentes will add genetic regulation, which will be built Audentes’ biotech.

“Recent scientific and technological advances in genetic medicine have advanced the potential to deliver unprecedented and sustained value to patients, and even to curing diseases with a single intervention,” said Kenji Yasukawa, president and chief executive of Astellas. “Audentes has developed a robust pipeline of promising product candidates which are complementary to our existing pipeline, including its lead program AT132 for the treatment of X-Linked Myotubular Myopathy (XLMTM). By joining together with Audentes’ talented team, we are establishing a leading position in the field of gene therapy with the goal of addressing the unmet needs of patients living with serious, rare diseases.”

“We are very pleased to enter into this merger agreement with Astellas,” said Matthew R. Patterson, chairman and chief executive of Audentes. “With its focus on innovative science and a global network of research, development and commercialisation resources, we believe that operating as part of the Astellas organisation optimally positions us to advance our pipeline programs and serve our patients.”

The deal is the second biggest acquisition ever completed by Astellas, surpassed only by its 2010 purchase of OSI Pharmaceuticals Inc for $3.8bn.

News: Japan's Astellas to buy Audentes for $3 billion in high-priced gene therapy bet

Global M&A recovery to continue into Q1 2020, says new report

BY Fraser Tennant

Global M&A activity over the six months ending Q1 2020 is expected to increase by around 6 percent year-over-year (YOY), according to a new Intralinks report.

In its ‘Deal Flow Predictor’, a quarterly prediction of future trends in the global M&A market, Intralinks forecasts a continuing M&A recovery – a major uptick from the  7 percent YOY decline in worldwide deal announcements in H1 2019.

The report’s insight is based on analysis by financial markets data and infrastructure provider Refinitiv and Intralinks, using predictive models to forecast the volume of new deal M&A announcements worldwide over the next six months.

Drilling down, in Europe, the Middle East & Africa (EMEA), Intralinks’ predictive model forecasts that the number of announced M&A deals is expected to increase by around 5 percent YOY over the six months ending Q1 2020. In North America, the number of announced M&A deals is forecast to increase by approximately 7 percent YOY over the same period.

Among other key findings, the strongest growth in deal announcements is expected to come from the technology, media and telecoms (TMT), materials and energy & power sectors.

“The Deal Flow Predictor forecasts the volume of future M&A announcements by tracking early-stage M&A activity – sell-side M&A transactions across the world that are in preparation or have begun their due diligence stage,” said said Philip Whitchelo, vice president of Intralinks. “These early-stage deals are, on average, six months away from their public announcement.”

Report: Deal Flow Predictor: forecast of global M&A activity through Q1 2020

eBay sells StubHub to viagogo in $4.05bn deal

BY Fraser Tennant

In a combination that forms a global live experiences marketplace, eBay is to sell its ticket exchange and resale company StubHub to online ticket marketplace viagogo in a deal valued at $4.05bn.

The definitive agreement is expected to see the complementary marketplaces of San Francisco-based StubHub and London-based viagogo sell hundreds of thousands of tickets daily across more than 70 countries.

“We believe this transaction is a great outcome and maximises long-term value for eBay shareholders,” said Scott Schenkel, interim chief executive of eBay Inc. “Over the past several months, eBay’s leadership team and board of directors have been engaged in a thorough review of our current strategies and portfolio, and we concluded that this was the best path forward for both eBay and StubHub.“

Founded in 1995, eBay is one of the world's most vibrant marketplaces. In 2018, it enabled $95bn of gross merchandise volume.

“It has long been my wish to unite the two companies,” said Eric Baker, founder and chief executive of viagogo and co-founder of StubHub. “I am so proud of how StubHub has grown over the years and excited about the possibilities for our shared future. Buyers will have a wider choice of tickets and sellers will have a wider network of buyers. Bringing these two companies together creates a win-win for fans – more choice and better pricing.”

Mr Baker co-founded StubHub while in business school but left before the business was sold to eBay for $310m in 2007.

“Bringing StubHub and viagogo together will allow us to drive further expansion and innovation, and create a more competitive offering for live event fans globally,” added Sukhinder Singh Cassidy, president of StubHub. “This provides a great opportunity to expand our business, pursue new partnerships and execute our strategy. We expect a seamless transition for all our employees, partners and customers, and we are excited for what the future holds.”

The sale of StubHub is expected to close by the end of the first quarter of 2020, subject to regulatory approval and customary closing conditions.

News: EBay to sell ticketing unit StubHub for $4.05 billion

LVMH goes shopping at Tiffany’s

BY Richard Summerfield

The world’s biggest luxury group LVMH has agreed to acquire US jeweller Tiffany & Co in a deal worth $16.2bn.

The deal will see Tiffany shareholders receive $135 per share held in cash, a premium of 7.5 percent over Tiffany’s closing share price on Friday, and more than 50 percent above where it stood before LVMH’s interest emerged. The acquisition of Tiffany will strengthen LVMH’s position in the jewellery space and further increase its presence in the US.

LVMH first approached Tiffany in late October with a $14.5bn bid which was rejected as too low. The higher offer has been approved by the boards of both companies but is still subject to the approval of Tiffany’s shareholders. The deal is expected to be completed by the middle of next year.

“We are delighted to have the opportunity to welcome Tiffany, a company with an unparalleled heritage and unique position in the global jewellery world, to the LVMH family,” said Bernard Arnault, chairman and chief executive of LVMH. “We have an immense respect and admiration for Tiffany and intend to develop this jewel with the same dedication and commitment that we have applied to each and every one of our Maisons. We will be proud to have Tiffany sit alongside our iconic brands and look forward to ensuring that Tiffany continues to thrive for centuries to come.”

“Following a strategic review that included a thoughtful internal process and expert external advice, the Board has concluded that this transaction with LVMH provides an exciting path forward with a group that appreciates and will invest in Tiffany's unique assets and strong human capital, while delivering a compelling price with value certainty to our shareholders,” said Roger N. Farah, chairman of the board of directors of Tiffany.

LVMH expects the deal, which will be financed by bond issues, will add around €500 to €600m to its operating profits in the first 12 month.

The deal for Tiffany is the latest in a succession of notable deals for LVMH, which has built up a large portfolio of luxury brands across different retail sectors, including Moët & Chandon, Dom Perignon, Givenchy and Louis Vuitton.

News: LVMH aims to restore Tiffany's sparkle with $16.2 billion takeover