Huge drug (pharma) money changes hands in high-level financial deals—why?

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by Jon Rappoport, No More Fake News:

These are notes on money-musical-chairs among drug companies. Big-time money.

Clues as to why there is such a tidal wave of cash:

One: Consolidation, of course. Fewer giant companies, who have greater control over the market, are too big to fail, and have more lobbying power with governments.

Two: The companies are making deals left and right to temporarily give stockholders and prospective investors the impression that “something good” is happening, while concealing the fact that numerous new drugs in the testing pipeline are failing to produce beneficial results, and are unsafe. Sleight of hand.

Three: The companies are making very favorable loan deals with banks, enabling them to buy out other drug firms. Before the loan repayments are completed, the companies will have sold themselves (and the debt) to bigger fish.

Four: A drug company knows its development of a new drug is fraudulent, and is riddled with illegal practices, such as lack of informed consent in recruiting volunteers for clinical trials. So it sells the research unit for that drug to another company, making it their problem.

Here are $$ details. Follow the astonishing money trails.

From: https://www.fiercepharma.com/m-a/sanofi-advent-international-nearing-eu2b-deal-for-european-generics-business-report:

“Other bidders may have dropped out of an auction for Sanofi’s European generics unit, but that doesn’t mean it hasn’t found a buyer. The drugmaker is nearing an agreement and could announce a sale in the next several days, Bloomberg reports.

“Sanofi’s board could meet as soon as Monday to vote on a deal worth about €2 billion ($2.48 billion), according to the news service’s sources. Of course, the sources note that the deal isn’t final and that it could ultimately fail to materialize.

“The news follows previous decisions by private equity firm Nordic Capital and Indian drugmaker Torrent Pharma to bow out of negotiations, worried that the unit is too pricey, according to press reports. PE firm Carlyle Group and Brazil’s EMS remained in deal talks through final bidding, according to Bloomberg.

“And that’s not the only deal Sanofi has had in the works. The company has been toiling to reshape itself for several years, and as part of that effort on Monday sold 12 “noncore” pharma brands to Cooper-Vemedia for €158 million, a spokesperson confirmed.

“The drugmaker talked about selling the business in 2015, but CEO Olivier Brandicourt made other M&A moves after coming on board instead. In 2016, Brandicourt offloaded Sanofi’s animal health unit Merial in an asset swap with Boehringer Ingelheim, getting BI’s consumer health business in return.

“The drugmaker hasn’t only slimmed down, though. Sanofi purchased nanobody biotech Ablynx for $4.8 billion and hemophilia-focused Bioverativ for $11.6 billion in sizable deals early this year. Afterward, Brandicourt said the acquisitions “dramatically reshape our portfolio in specialty care” and boost the company’s R&D presence.”

Here is more: https://www.fiercepharma.com/pharma/takeda-still-eyeing-a-buy-shire-casts-off-oncology-for-2-4b:

“With suitor Takeda circling Shire, the Dublin-based target has pulled off a deal of its own.

“On Monday, Shire announced it had agreed to hand its oncology business to France’s Servier for $2.4 billion, a move it said would sharpen its focus on rare diseases. And more streamlining deals are likely on the way.

“While the oncology business has delivered high growth and profitability, we have concluded that it is not core to Shire’s longer-term strategy,” CEO Flemming Ornskov said in a statement, adding that “we will continue to evaluate our portfolio for opportunities to unlock further value … with selective disposals of nonstrategic assets.”

“Meanwhile, Servier will land an “immediate presence” in the U.S. with products such as Oncaspar, which Shire nabbed in its Baxalta buyout. Baxter had bought the med to diversify its pharmaceutical portfolio before spinning it off into Baxalta, which Shire later picked up after a monthslong pursuit.

“The oncology move makes things interesting for Japanese drugmaker Takeda, which late last month made its buyout interest in Shire public.

“The deal should … boost Shire’s negotiating position on asking price in the current offer period with Takeda, in our view,” Jefferies analyst Peter Welford wrote in a note to clients.”

And more: https://www.fiercepharma.com/pharma/mylan-s-advanced-talks-for-merck-kgaa-s-4b-plus-otc-unit-report:

“Pfizer may have run into snags trying to sell its consumer health business, but Merck KGaA may be in advanced discussions with a player over its own for-sale unit. And that player is Mylan, according to reports.

“The two companies are negotiating a price between $4.3 billion and $4.9 billion, Reuters says, although there’s no certainty they’ll lock down a deal. The German drugmaker has also reportedly chit-chatted with private equity groups about a sale, according to the news service.

“Mylan, for its part, denies the report. “Although it’s Mylan’s policy to not comment on rumors or speculation, given the egregious inaccuracy of reports issued this morning, the company is compelled to confirm that the Reuters article is untrue,” the company said in a statement.

Read More @ JonRappoport.com