The Life Sciences in New York State

Genzyme buys NYC-based BioEnvision

Genzyme Corporation to Buy Bioenvision for $345 Million in Cash

Genzyme Corporation and Bioenvision, Inc. announced today that they have reached an agreement under which Genzyme will acquire Bioenvision in an all cash transaction valued at $5.60 per outstanding common share, or approximately $345 million, representing a premium of approximately 50 percent over the last twenty trading day average. The transaction is expected to be approximately six cents dilutive in 2007, slightly dilutive to break-even in 2008, and accretive in 2009.

Hedge fund with a merchant banking twist

Interesting model:

1. Invest in public LBO candidates
2. Attempt to drive the LBO by performing merchant banking function
3. Collect fee from private equity shop (plus earn a return on the sale of their shares, presumably)



Hedge fund matchmaker targets LBO candidates

The managers say they analyze companies in the same way buyout firms do - forecasting future cash flow and creating financing options based on the current state of the high yield bond and leveraged loan markets. Once they've determining how much a company might be worth as private business, the managers invest if the stock is trading at a discount to that value.

Entrepreneurs struggling to raise capital

This is quite consistent with my experience here in New York...

Angels clip wings of entrepreneurs

As the market grows, angels -- especially angel investor groups -- are moving upstream, looking to dole out more money and take fewer risks. Meanwhile venture capital firms anchored by huge funds are increasingly looking to invest larger rounds of cash. Entrepreneurs say that combination has made tapping into angel capital, once fertile ground for early-stage funding, trickier in recent years.

CROs banding together

Interesting. Three CROs in China are banding together to provide a much broader suite of Discovery and Preclinical capabilities.

First CRO Service Alliance Formed in China

Sundia MediTech, United Pharma and HD Biosciences will be on the cutting edge of synthesizing new pharmaceuticals, lead optimization, molecular bio-assay development and tests, in vitro and in vivo PK/ADME research, and cGMP required intermediates and API for clinical trails...

On Avandia...and Sharks

Have you ever seen Jaws 3? In that awful movie, the protagonists manage to fight off a hideous killer shark, only to find that the dead shark's mother is still prowling the waters off the coast of Long Island.

Well, if Vioxx was the shark's son, here comes the Mother of them all...

Glaxo's Drug Disaster? - Forbes.com

If Avandia does boost heart risk, the repercussions will reach far beyond GlaxoSmithKline or even the patients who may have been harmed by the drug. Right now both houses of Congress are debating bills that would reform the U.S. Food and Drug Administration; these bills must be passed by September or the FDA will have inadequate funds.

Taro sold to India-based Sun Pharmaceuticals

Interesting. Taro has significant financial issues. I wonder if having Indian owners will help the economics in any way?

Taro Investor Relations

HAWTHORNE, N.Y.--(BUSINESS WIRE)--May 20, 2007--Taro Pharmaceutical Industries Ltd. ("Taro," the "Company," Pink Sheets: TAROF) and Sun Pharmaceutical Industries Ltd. ("Sun," Reuters: SUN.BO, Bloomberg: SUNP IN, NSE: SUNPHARMA, BSE: 524715) today announced that they have entered into a definitive merger agreement providing for the acquisition of Taro by Sun for $7.75 per share in cash, a premium of 27% over the closing price of $6.10 per share on May 18, 2007, representing a transaction with total equity value of approximately $230 million. Sun will also refinance approximately $224 million in net debt of Taro. The total enterprise value of the transaction is approximately $454 million. Taro and Sun also announced that they have entered into a separate definitive agreement for Sun to provide immediately $45 million of interim equity financing to Taro by acquiring 7.5 million of the Company's ordinary shares.

Buy buy BOL

More on this deal later...

Bausch & Lomb agrees to $4.5 billion buyout - MarketWatch

As to whether or not other suitors will emerge, Johnson said other private companies may "take a look", but thinks public companies, given the 344 product liability lawsuits that Bausch & Lomb is facing, "are likely to shy away" from the company.

Now that's an LBO...

What I find interesting about the Mylan/Merck KGcA deal is that it's being described in a private equity/LBO context. You don't see/hear that very often in an industry known for its "merger of equals".

24/7 Wall St.: Mylan's Shareholders Act As LBO Lenders

It isn't just the fact that there will be dilution, it's the fact that the leverage today and tomorrow is going to be a large burden for years ahead. This also just took away almost any shot that Mylan Labs could ever be considered a potential takeover target itself.