Merger and Acquisition Activity Expected to Rise in 2013 as Big Pharma Companies Flush With Cash

NEW YORK, NY–(Marketwire – Jan 9, 2013) – Lost revenues from expiring patents has played a major part in the Biotech Industry’s success in recent years. A total of 676 takeovers of biotechnology and pharmaceutical companies have occurred in the past three years, with an average premium of 38 percent, according to data collected by Bloomberg. Five Star Equities examines the outlook for companies in the Biotech Industry and provides equity research on Biosante Pharmaceuticals Inc. (NASDAQ: BPAX) and Cell Therapeutics Inc. (NASDAQ: CTIC).

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At the end of the third quarter five of the biggest drug makers in the U.S. held over $70 billion in cash, near cash and short-term investments. Major revenue losses from patent expirations have forced big pharmaceutical companies to look to biotech companies to help fill the void. Pfizer’s Lipitor and Bristol-Myers’ Plavix, which lost exclusivity in late 2011, had combined annual revenues of $17 billion at their peaks.

“We’re through many cost-cutting programs, restructurings and portfolio arrangements,” said Henry Gosebruch, Managing Director, Mergers & Acquisitions J.P. Morgan. “When you put that together with record levels of cash available and improving, but still moderate R&D productivity, we think there will be more big pharma M&A activity in 2013.”

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BioSante Pharmaceuticals is a specialty pharmaceutical company focused on developing products for female sexual health and oncology. The company is developing a portfolio of cancer vaccines, with 17 Phase I and Phase II clinical trials currently on-going. Four of these vaccines have been granted Orphan Drug designation by the FDA.

Cell Therapeutics is a biopharmaceutical company committed to the development and commercialization of an integrated portfolio of oncology products aimed at making cancer more treatable. The company’s treatment for non-Hodgkin B-cell lymphoma, Pixuvri is now commercially available in Sweden, Denmark, Finland and Austria.

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2013-01-09 07:17:54

Source: http://www.marketwire.com/mw/release.do?id=1743882&sourceType=3