|
 |
Apr-13-2008Takeda Faces Generic Threat Even With Millennium Buy (Update5)(topic overview)
CONTENTS:
- Takeda Pharmaceutical Company Limited, the largest drug maker in Japan, announced on Thursday that it reached a definitive agreement over the acquisition of the U.S. company Millennium for around 8.8 billion dollars. (More...)
- Takeda, the world's 17th-largest pharmaceutical company, said the deal could create a "powerful new drug development engine," giving it rights to Millennium's fast-growing cancer drug, Velcade, and access to a rich pipeline of cancer and anti-inflammatory drugs in development. (More...)
- Millennium shares skyrocketed 48.9%, or $7.99, to close at $24.34 on Thursday. (More...)
- Millennium Pharmaceuticals, Inc. MLNM $24.39 +0.05 (+0.21%) (More...)
- The agreement includes $123 million in upfront and potential development milestone payments from Kyowa to ArQule, including a $30 million cash licensing payment. (More...)
- Rite Aid Corp. shares fell 6.9% after the pharmacy chain said it swung to a fiscal fourth-quarter loss, and projected results for the new fiscal year below Wall Street's expectations. (More...)
SOURCES
FIND OUT MORE ON THIS SUBJECT
Takeda Pharmaceutical Company Limited, the largest drug maker in Japan, announced on Thursday that it reached a definitive agreement over the acquisition of the U.S. company Millennium for around 8.8 billion dollars. The offer of 25 dollars per share was unanimously approved by both companies' Boards of Directors, as the bid represents a 53 percent premium over the Millenium's closing price a day before and the transaction would offer Takeda the possibility to enter the U.S. pharmaceutical market. Millenium will also offer Takeda its Velcade, a drug used after other drugs fail in the treatment of rare blood cancers. "Millennium greatly strengthens Takeda's global oncology portfolio, led by the flagship product VELCADE, and further enhances its pipeline with clinically differentiated, high-quality product candidates," said Yasuchika Hasegawa, President of Takeda Pharmaceutical Company Limited. Through the deal, Takeda starts its plan to become a global leader in oncology, as both companies have complementary research, development and commercialization capabilities, which can potentially turn into a powerful drug development engine. [1] Takeda Pharmaceutical Co. announced an $8.8 billion bid for Cambridge, Mass. -based biotechnology company Millennium Pharmaceuticals Inc., an all-cash offer that would give Japan's top drug maker a key cancer treatment. Takeda, which specializes in treatments for diabetes and cardiovascular problems, continues to push for more access to cancer drugs with its most recent bid. Millennium's top drug is the blood cancer treatment Velcade, which is expected to generate revenue of $345 million this year.[2] Takeda Pharmaceutical of Japan has announced plans to purchase U.S. biotech firm Millennium Pharmaceuticals in a deal valued at nearly $9 billion. The deal is the largest transaction involving a Japanese company so far this year and brings the Osaka-based Takeda a new therapeutic area -- cancer treatments. Millennium's leading product is Velcade, a blood cancer treatment expected to generate revenues of as much as $345 million this year, according to analysts.[3]
NEW YORK (AP) — Wall Street applauded Takeda Pharmaceuticals' $8.8 billion cash bid for Millennium Pharmaceuticals, which will give the Japanese company access to a lucrative blood cancer drug and stockholders of the Cambridge, Mass. biotech firm a sweet premium on their shares.[4] TOKYO (Reuters) - Shares in top Japanese drug maker Takeda Pharmaceutical Co (4502.T: Quote, Profile, Research ) fell 2 percent on Friday, a day after it said it would spend $8.8 billion to buy U.S. biotech firm Millennium Pharmaceuticals (MLNM.O: Quote, Profile, Research ), and analysts gave mixed reactions to the acquisition.[5] TOKYO: Takeda Pharmaceutical Co Ltd said it would buy U.S. firm Millennium Pharmaceuticals Inc for $8.8 billion to boost its cancer drug business, in the biggest overseas acquisition by a Japanese drug maker.[6] Takeda Pharmaceutical Co Ltd. is going to buy U.S. firm Millennium Pharmaceuticals Inc, a biopharmaceutical company based in Cambridge, Massachusetts, for $8.8 billion. The Jjapan's drug maker believes that this acquisition would to propel its cancer drug business.[7]
J apan's Takeda Pharmaceutical Co. plans to shell out "retention bonuses" to most of Millennium Pharmaceuticals Inc.' s 1,000 employees after its blockbuster 8.8 billion takeover of the Cambridge company is completed later this spring. Takeda, which shocked the Boston business community yesterday morning with its surprise offer to buy Millennium, is determined to keep its new employees as it solidifies its U.S. base in Cambridge and rolls out new drug products, a high-level Millennium executive said yesterday. "It's highly unusual," Anna Protopapas, senior executive vice president at Millennium, said of Takeda's unspecified monetary incentives for employees to stay with the company for 12 to 24 more months after the takeover. Bob Coughlin, chief executive of the Massachusetts Biotechnology Council, said the bonus move is "extraordinary" and shows Takeda, Japan's largest drug company, is serious about its commitment to Millennium's future as a standalone subsidiary. He said the incentives are clearly aimed at calming the nerves of Millennium employees who might be upset at the prospect of a new owner.[8]
Nikkei English News - Apr. 11, 2008 TOKYO -(Dow Jones)- Investors reacted coldly Friday to Takeda Pharmaceutical Co.' s (4502.TO) $8.8 billion all-cash deal to acquire Millennium Pharmaceuticals Inc. (MLNM), with analysts questioning the high premium paid for the U.S. biopharmaceutical company. After losing as much as 6.5%, Takeda shares ended morning trading down 2.8% at Y5,260 - against an overall market gain of 2.1% - even as Takeda pledged to buy back up to 1.24%, or 11 million, of its outstanding shares for up to Y60 billion.[9] Takeda will buy the U.S. company based in Cambridge Mass. for $25 a share which represents 52.9% premium on $16.35, Millennium's closing share price on Wednesday. The deal was announced after trading closed and it is the largest transaction involving a Japanese company in this year according to the Wall Street Journal. With this merge the Japanese firm, which specializes in treatments for cardiovascular and diabetes treatments, will benefit from Millennium's cancer drugs.[10] For some drug industry watchers, the Millennium purchase price was too high at $25 a share, a 53 percent premium to the biotech firm's closing share price on Wednesday. They note that the addition of Millennium's top drug, blood cancer treatment Velcade, to Takeda's portfolio would not be enough to stave off a big drop in revenue when the Japanese firm loses U.S. patent protection on its main earnings driver, the diabetes drug Actos. Merrill Lynch cut its rating to "sell" from "buy".[5]
A Big Pharma facing a patent cliff has to drop a boatload of cash to pick up a mid-sized biotech with a promising pipeline. Taking a classic page from the Big Pharma survival playbook, Takeda Pharmaceutical, Japan's biggest drug maker, said this morning it would spend nearly $9 billion to buy Millennium Pharmaceuticals, a U.S. biotech that makes the cancer drug Velcade. That's a hefty premium of 53% to yesterday's closing price.[11] Shares of Takeda Pharmaceutical, Japan'''s largest drug maker, fell 3.7% on Friday after it announced it was buying Millennium Pharmaceuticals, a U.S. biotechnology company with an approved cancer drug, for $8.8bn in cash, in the biggest foreign acquisition by a Japanese pharmaceutical company.[12] Mumbai : Takeda Pharmaceutical Co Ltd, Japan's largest drug firm, will acquire U.S. biopharma firm Millennium Pharmaceuticals Inc for $8.8 billion, in the biggest overseas acquisition by a Japanese drugmaker.[13] Millennium Pharmaceuticals MLNM said Thursday that it will be acquired by Japan's largest drugmaker, Takeda Pharmaceuticals, in a deal worth $8.8 billion -- the largest overseas acquisition by a Japanese drugmaker to date.[14]
Biopharmaceutical firm Millennium Pharmaceuticals Inc. is in an agreement to be acquired by Japanese drug maker Takeda Pharmaceutical Co. Ltd. in a deal valued at $8.8 billion.[15] Mass. biotech is sold for $8.8b Boston Globe Millennium Pharmaceuticals Inc., one of Massachusetts' best-known biotechnology companies, has been sold to Japanese drug maker Takeda Pharmaceutical Co. for $8.8 billion, making it the biggest deal in the history of the state's biotech industry.[16]
Takeda Pharmaceutical Co., Japan's largest drug maker, agreed to buy Millennium Pharmaceuticals Inc. for $8.8 billion, gaining a cancer medicine poised for wider use.[17] I met up with a health care venture capitalist. He mentioned that M&A; is likely to be a big factor over the next few years. Major pharma companies will have a variety of their blockbuster drugs go off-patent. Well, interestingly enough, we got a mega-deal today; that is, Takeda Pharmaceuticals (the top drug company in Japan) has agreed to pay $8.8 billion for Millennium Pharmaceuticals (NASDAQ: MLNM ), which develops biopharmaceuticals for such things as cancer and inflammatory diseases (its top drug is Velcade).[18] Millennium Pharmaceuticals gained 50% on news that Japan's Takeda Pharmaceutical is going to pay $8.8 billion to buy the biotechnology company at $25 a share.[19] Japan's top drugmaker, Takeda Pharmaceutical (other-otc: TKPHF - news - people ), said it had agreed to acquire Millennium Pharmaceuticals (nasdaq: MLNM - news - people ) in a deal worth about $8.8 billion.[20] Takeda Pharmaceutical Co., Japan'''s largest drugmaker has agreed to buy U.S.-based Millennium Pharmaceuticals for $8.8 billion.[21] In its second major effort to grow in the U.S. market, Takeda Pharmaceutical Co., Japan's largest drugmaker, agreed to buy Millennium Pharmaceuticals Inc. for more than $8 billion, gaining the cancer medicine Velcade, which is poised to win wider use later this spring.[22]
Analysts believe that Velcade can bring in more than $1 billion in worldwide sales, in future. Other promising cancer medicines and various drugs of Cambridge-based Millennium are still being tested on patients and may not be approved by regulators until after 2011. Osaka-based Takeda is in need of new drugs and research capacity because its biggest seller, the diabetes drug Actos''' patent expires in 2011. Takeda and Abbott Laboratories, only a month ago had declared plans to split up their decades-old drug-sales joint venture, TAP Pharmaceutical Products Inc. Post the split, North Chicago-based Abbott will gain U.S. rights to Lupron, a prostate cancer medication with $600 million in annual sales, and $1.5 billion in cash, while Takeda will get the overseas rights to Lupron and global rights to the $2 billion-a-year heartburn drug Prevacid.[21] Takeda plans to retain Millennium's senior management and as many employees as it can. Its plan is for Millennium to operate as an independent unit. Takeda President Yasuchika Hasegawa told a news conference that he wants Takeda to become one of the world's top three oncology companies by 2020. He said the company's cash available for acquisitions has now been used up and he does not plan to make any additional purchases in the immediate future. Takeda said it believes Velcade, which had global sales of $800 million last year, will achieve blockbuster status of well over $1 billion in its current uses. It is jointly marketed in the United States with Johnson & Johnson (JNJ.N), which also markets the drug in other countries.[23] "Millennium's contribution to earnings in the short to medium term will not be not be very large, making it difficult to overlook the premium the company is paying," said Merrill analyst Masatake Miyoshi in a copy of a report obtained by Reuters. Millennium believes Velcade, which garnered global sales of $800 million last year, will achieve blockbuster status of well over $1 billion in its current uses. It is jointly marketed in the United States with Johnson & Johnson (JNJ.N: Quote, Profile, Research ), which also markets the drug in other countries.[5]
Takeda in February agreed to buy Amgen Inc.' s Japanese unit for as much as $902 million, gaining about a dozen experimental medicines including two in the final stages of human testing for lung cancer. Takeda hasn't developed any cancer therapies in its own labs that have progressed to advanced human trials. The drugmaker wants to strengthen its cancer business, "where we had a slow start in sales and in getting sufficient compounds into the pipeline,'' Takeda President Yasuchika Hasegawa told reporters in Tokyo yesterday. He said Takeda will provide details on the deal's impact on earnings when the drugmaker reports results on May 9. It sought U.S. approval in January for alogliptin, a once- daily treatment for type-2 diabetes and the candidate to succeed Actos. The new drug will have to go up against a similar-acting drug, Januvia, sold by Merck & Co. that generated sales of $667.5 million in its first full year on the market in 2007. "As Takeda faces the expiration of the Actos patent, it needs to make effective use of its financial resources to make up for it,'' said Kumi Miyauchi, a drug analyst with Daiwa Institute of Research in Tokyo.[24] Takeda recently agreed to buy Amgen Inc's (AMGN.O) Japanese subsidiary. Last month it said it might pay Abbott Laboratories Inc (ABT.N) up to $1.5 billion under an agreement to split their U.S. joint venture TAP Pharmaceutical Products, which would give Takeda the blockbuster heartburn drug Prevacid. "I see this as a positive move. Major drug companies, including Takeda, need to develop new drugs before their patents expire," said Kumi Miyauchi, an analyst at the Daiwa Institute of Research.[23]
One of Millennium's major drugs is Velcade, a blood cancer drug treatment expected to generate revenue of $345 million in 2008. Takeda is trying to avoid a loss in revenue as the patents of two of its top selling products, Prevacid (ulcer treatment) and Actos (diabetes treatment) expire in 2009 and 2011 respectively. Takeda is using its cash in acquisitions or licensing agreements now. In February, Takeda acquired a Japanese unit Amgen Inc. and obtained rights to market several of its cancer drugs in Asia. It also bought Abbott Laboratories and the license to develop and sell a prostate cancer vaccine from Cell Genesys Inc. This article is copyrighted by International Business Times.[10] Takeda currently specializes in treatments for diabetes and cardiovascular problems. Millennium's top drug is the blood cancer treatment Velcade, which is expected to generate revenue of $345 million this year.[25] The Millennium purchase adds blood cancer drug Velcade to Takeda's portfolio. The U.S. biotech firm forecast in January that Velcade would produce $320-$345 million in sales this year, up around a quarter from 2007.[7] Millennium's key drug is the blood cancer treatment Velcade, which had sales of $83.5 million in the first quarter, up 42 percent from a year ago, above analysts' estimates. Velcade sales are expected to reach $345 million this year.[4]
Buying Millennium will bolster sales in the U.S., Takeda's fastest-growing market. Revenue rose 1.7 percent in the quarter ended Dec. 31, the slowest pace in at least four years, on flagging demand for its prostate and stomach ulcer drugs. Millennium, led by Chief Executive Officer Deborah Dunsire, earned $14.9 million in net income, its first profit since 1998, according to data compiled by Bloomberg.[24]
The friendly cash offer of $25 per share ''' 53% above Millennium's closing share price on Wednesday ''' is the latest example of accelerating M&A; in the biotech sector as drugmakers scramble to secure promising technologies and pipelines developed by smaller firms. Takeda, Japan's largest drugmaker, has long been under pressure to use a $10 billion war chest to strengthen its pipeline before a U.S. patent on its top-selling diabetes drug, Actos, expires in 2011.[6] Millennium shareholders will receive $25 a share in cash, 53 percent more than the April 9 closing price before the deal was announced, revealed the two companies. "This deal will boost Takeda's drug-development flow," said Mitsuo Ohmi, a Tokyo-based analyst at Japan Advisory LLC. "Millennium is a leader in genome medicine, with some promising drugs in early development."[21] Stockholders of Cambridge-based Millennium will receive $25 a share in cash, 53 percent more than Wednesday's closing price, the two companies said. Osaka-based Takeda needs new drugs and research capacity because its biggest seller, the diabetes drug Actos, faces patent expiration in 2011.[22]
Takeda's sudden and lucrative takeover bid of 25 per share - about 53 percent above Millennium's closing price on Wednesday - took some local business leaders by surprise yesterday. "It's always nice to see a local company" stay independent, said Andre Mayer, economic research director at the Associated Industries of Massachusetts. He added Takeda clearly wants to tap into Boston's rich biotech talent pool - as well as get control of Millennium's cancer drug Velcade, considered a potential blockbuster for the company.[8]
Takeda announced the offer late Wednesday, which works out to about $25 per share, or 53 percent above Millennium's closing price of $16.35 that day.[4] The Osaka-based company will launch a tender offer of $25.00 per share, a 53 percent premium to Millennium's closing price on April 9 of $16.35.[26] The cash offer is worth $25 per share, more than a 50 percent premium over Millennium's Wednesday closing share price of $16.35.[2]
Takeda has agreed to pay Millennium $25 per share - a 53 per cent premium over Millennium's closing share price on Wednesday. The acquisition will give Takeda rights to Millennium's blood-cancer medicine Velcade before the patent on its best-selling Actos diabetes pill expires in 2011.[13] Japan's largest drugmaker is buying Millennium, and its lucrative Velcade multiple myeloma product, in an all-cash deal for $25 a share, a hefty 53 percent premium to Wednesday's closing price.[27] Stockholders of Cambridge, Massachusetts-based Millennium will receive $25 a share in cash, 53 percent more than the April 9 closing price before the deal was announced, the two companies said.[24] Stockholders of Cambridge, Mass. -based Millennium will receive $25 a share in cash, 53% more than Wednesday's closing price, the two companies said.[17]
Takeda agreed to pay $25 a share in cash, or 53 percent above Millennium's closing share price on Wednesday of $16.35.[23] Takeda offered $25 per share, 53 percent higher than Millennium's closing stock price on Wednesday.[16] Takeda announced plans to acquire the Cambridge, Mass. -based biotech April 10 for $25 per share, a 53 percent premium over the April 9 closing price.[28]
Takeda is paying $25 a share, or a 53% premium to Millennium's closing price of $16.35 a share on Wednesday.[14] Takeda will launch a tender offer of $25.00 a share, a premium of 53% on Millennium'''s Wednesday closing price of $16.35.[12]
Takeda will be paying cold, hard cash--it had built up a 1 trillion yen ($9.9 billion) war chest to make acquisitions. The deal should come as a relief to Takeda holders--investors have dumped the company's shares over the past six months out of frustration at its slowness in putting the cash hoard to work. Given the weakening of the dollar--the greenback has fallen 15% against the yen over the past 12 months--waiting has allowed Takeda to get more for its money. It also has allowed Takeda to pay a substantial premium in dollar terms, virtually ensuring acceptance of the offer by Millennium shareholders.[20] Takeda, evidently worried about an exodus from Millennium Pharmaceuticals, plans to offer retention bonuses to most of the 1,000 workers at the biotech firm after the Japanese company's nearly $9 billion takeover goes through, the Boston Herald reports. "It's highly unusual," Anna Protopapas, a bigwig at Millennium, told the paper about Takeda's plan for incentives for so many employees.[29] The Japanese Takeda Pharmaceutical Co. agreed to buy Millennium Pharmaceuticals, Inc. a biotechnology company, for $8.8 billion on a move to remain competitive in the global market.[10] Japanese drug maker Takeda Pharmaceutical Co. said it would buy the company for $8.8 billion.[30]
Takeda's acquisition of Millennium for $8.8 billion will extend the Japanese drug maker's presence in oncology and help stem the loss of revenues as key drugs go generic.[28] Associated Press - April 10, 2008 1:44 PM ET TOKYO (AP) - Japan's top drug maker has announced an $8.8 billion acquisition of Cambridge-based biotechnology company Millennium[25]
And, most recently, Japan's Takeda offered $8.8 billion for Cambridge, Mass. -based Millennium. The Deal reports that Takeda was under pressure to spend its ''1.77 trillion ($17.5 billion) in cash, and Japan's largest drugmaker has responded to the pressure by wheeling and dealing.[31] Rule Breakers pick Millennium Pharmaceuticals (Nasdaq: MLNM ) said that Takeda Pharmaceuticals was acquiring it for $8.8 billion in cash, a 53% premium to where it closed on Wednesday. Takeda's buyout is ironic because in the past few years, Millennium has been the one trying to make acquisitions: It even failed in a bidding war with Genzyme (Nasdaq: GENZ ) for AnorMED two years ago.[32] Takeda Pharmaceuticals Ltd. continued its recent love affair with U.S. biologics, entering into an agreement to purchase Millennium Pharmaceuticals Inc. for $8.8 billion, and instantly gaining a strong foothold in the cancer field.[27]
Looking to expand out of a budget-bound Japanese market, Takeda is taking a big chunk of its $10 billion war chest and offering $8.8 billion in cash for U.S.-based Millennium Pharmaceuticals.[33]
Takeda, the world's 17th-largest pharmaceutical company, said the deal could create a "powerful new drug development engine," giving it rights to Millennium's fast-growing cancer drug, Velcade, and access to a rich pipeline of cancer and anti-inflammatory drugs in development. Company executives said they plan to operate Millennium as a separate business unit, retaining its name, management team, and workforce of about 1,000, including 800 at its Cambridge headquarters. "It is very important for us to stay and drive the business forward," said Millennium chief executive Deborah Dunsire, who said she planned to stay with the company for at least a year. [16] Takeda's proposed $25-a-share buyout affirms Velcade's resurgence and Millennium's steadily progressing biologics drug pipeline. The Millennium deal is expected to close sometime this quarter. Takeda has been making a lot of bets in oncology and biotech recently, like its deal with Cell Genesys (Nasdaq: CEGE ) last week for its prostate cancer immunotherapy compound, which is in phase 3 trials. Over the past two years, biopharmaceutical assets have been hot commodities, compared with their small-molecule drug peers.[32]
Millennium climbed $7.99, or 49%, to $24.34 on Thursday. Takeda, based in Osaka, needs new drugs and research capacity with its biggest seller, the diabetes drug Actos, facing patent expiration in three years. "This deal will boost Takeda's drug-development flow," said Mitsuo Ohmi, a Tokyo-based analyst at Japan Advisory.[17] "Velcade will be a blockbuster in short order," said Millennium President and CEO Deborah Dunsire during a conference call. Takeda President Yasuchika Hasegawa told investors he believes Velcade will achieve sales of more than $1 billion just in its current indications. Cowen and Co. analyst Rachel McMinn said in a research note that the deal was intended by Takeda to "strengthen its oncology franchise. strengthen its R&D; presence in the U.S. strengthen its GI franchise with MLNM's monoclonal antibody alpha4beta7 MLN0002 for ulcerative colitis and Crohn's disease."[27]
"We believe the deal, the largest for the company, is an extremely important investment to ensure our sustainable growth in the future." Japan's largest drugmaker by sales has struggled to stay competitive, aggressively expanding ties with U.S. drug makers, particularly those that focus on cancer. Ranking 17th among global drug makers, Takeda is attempting to head off a loss in revenue as its patents expire on key drugs.[2] Takeda, Japan's largest drug maker by sales, has specialized in treatments for diabetes and cardiovascular problems. Ranked 17th among global drug makers, it has struggled to stay competitive while attempting to head off a loss in revenue as its patents expire on key drugs. It has recently been expanding ties with U.S. drug makers, especially those that focus on cancer treatments.[4]
For all the complaints about the FDA, drug development in Japan is a much slower and more painful process. Thanks to a system where drugmakers pay when their medicines are approved, the FDA has 10 times as many drug reviewers as its Japanese equivalent. Takeda has also been under pressure to pull off a big acquisition due to the upcoming expiration of its U.S. patents on the ulcer treatment Prevacid in 2009 and Actos, the world's best-selling diabetes drug, in 2011. It needs to develop or acquire new treatments and build up sales before generic versions of Prevacid and Actos gain traction.[20] The acquisition of Millennium also follows a decision to end a three-decade partnership with U.S. drug company Abbott Laboratories (nyse: ABT - news - people ). The two companies agreed to split their American joint venture, with Takeda taking the bigger slice, including its R&D; operations, as well as the candidate treatments in its pipeline. A decade ago, Takeda did no business in North America; in the fiscal year that ended in March 2007, the region accounted for 33% of its sales.[20]
Takeda Pharmaceutical Company Limited is the largest pharmaceutical company in Japan, with overseas business offices in Europe and in the United States. Takeda has long been under pressure to use a $10 billion war chest to strengthen its pipeline before a U.S. patent on its top-selling diabetes drug, Actos, expires in 2011.[7] The Nasdaq Biotechnology Index(.NBI) as a whole rose 3.5 percent. Takeda, Japan's largest drugmaker, has long been under pressure to use its $10 billion war chest to strengthen its pipeline before a U.S. patent on its top-selling diabetes drug, Actos, expires in 2011.[23]
In the next few years, Takeda will lose patent protection on a pair of blockbusters, Prevacid (for heartburn) and Actos (for diabetes). The company's president, Yasuchika Hasegawa, has pledged to tap the company's $20 billion cash pile to buy his way out of trouble, the WSJ notes. He's been peeling some big bills off the wad lately. Earlier this year, the company bought Amgen's Japan unit, and landed marketing rights to several Amgen drugs for Japan and Asia. The company bought its way out of a joint venture with Abbott Labs.[11] In February, Takeda brokered a deal to purchase Amgen's Japan unit and gain marketing rights to 13 Amgen drugs for Japan and Asia. In March, Takeda bought out partner Abbott Laboratories in its TAP Pharmaceuticals joint venture. Takeda is Japan's largest drugmaker in terms of revenue but is staring at looming patent expiration on its biggest-selling products ''' the proton pump inhibitor Prevacid which expires in 2009, and diabetes treatment Actos, which will see expiry in 2011.[3] In February, it agreed to pay Amgen Inc., of Thousand Oaks, Calif., potentially more than $1 billion for Japanese rights to 13 molecules, including the FDA-approved colorectal drug Vectibix (panitumumab). In March, Takeda and Abbott, of Abbott Park, Ill., ended their 31-year joint venture for TAP Pharmaceutical Products Inc., with Takeda taking over TAP and the companies splitting up its products.[27] On March 31, it announced a $320 million global alliance with Cell Genesys Inc. for the development and commercialization of GVAX Immunotherapy for prostate cancer. In March, Takeda decided to end its TAP Pharmaceutical Products Inc. joint venture with Abbott Laboratories Inc. The JV was created in 1977 and had 2007 revenues of $3.1 billion.[31] Millennium has more than a half billion dollars in revenue last year and also has a number of inflammation and cancer therapies in the pipeline, which would also address Takeda's interest in oncology. "Millennium greatly strengthens Takeda's global oncology portfolio, led by the flagship product Velcade, and further enhances its pipeline with clinically differentiated, high-quality product candidates," said Yasuchika Hasegawa, President of Takeda.[33]
Millennium will be known as Millennium Pharmaceuticals Inc., a Takeda Company, according to a statement from the firms. The transaction was unanimously approved by the boards of directors of both companies. Millennium is best known for its product Velcade, a treatment for some types of cancer.[15] Although Thursday's news of a possible deal between Yahoo! Inc. -Microsoft Corp. -News Corp. -AOL LLC-Google Inc. drew all the attention, the latest cross-border transaction between Japan's Takeda Pharmaceutical Co. Ltd. and Millennium Pharmaceuticals Inc. of the U.S. is a noteworthy example of the state of dealmaking.[31] April 11 (Bloomberg) -- Takeda Pharmaceutical Co. shareholders may not be satisfied with the purchase of Millennium Pharmaceuticals Inc. because the company won't gain enough new revenue to counter generic competition to its best-selling Actos diabetes pill.[24]
Takeover: Cambridge's Millennium Pharmaceuticals, above, will remain a standalone subsidiary of Japan's Takeda Pharmaceuticals whose offer shocked the Boston business community.[8] The agreement calls for Cambridge, Mass. -based Millennium (Nasdaq: MLNM) to be taken private through a cash tender offer of $25 per share and become a wholly-owned subsidiary of Takeda as a standalone business unit.[15] Takeda's offer is significantly higher than the 12-month target price of any analyst covering Millennium shares. According to Thomson Financial, their targets ranged from $9 to $20 per share, with an average of $16.27.[34] Shares of Millennium quickly rose to within the range of Takeda's offer price, surging nearly 50 percent to $24.42.[4] Shares jumped toward the offer price in heavy morning trading, climbing $8.14, or 49.8 percent, to $24.49. The stock peaked at $24.50, its highest price since March 2002. BMO analyst Jason Zhang said he thinks Millennium shareholders will accept the offer and thinks the deal will win regulatory approval.[34]
Millennium shares rocketed 48.9 percent yesterday to $24.34, up $7.99, the highest level in four years. The stock is still below its peak in late 2000, when investors thought Millennium was going to be one of the leading biotechs of the new century, sending its share price to more than $80 and making the company worth about $18 billion.[16] "Takeda has been sitting on a pile of cash,'' said Samuel Isaly, a managing partner at Orbimed Advisers LLC in New York, who oversees the Eaton Vance Worldwide Health Sciences Fund with $1.5 billion under management and owns 3 million Millennium shares. "It represents something like a quarter of their market value and they get close to zero return on it in terms of the rate of interest paid,'' said Isaly. His fund sold Takeda stock during "the last couple of months because of the patent cliff'' facing the drugmaker, he said.[24] UBS (UBSN.VX) advised Takeda on the deal while Goldman Sachs (GS.N) advised Millennium. Takeda also said on Thursday it would buy back up to 60 billion yen ($593 million) of its own shares.[23] UBS Investment Bank and Goldman Sachs advised Takeda and Millennium, respectively. Takeda, meanwhile, is planning to buy back up to 60 billion yen ($593 million) worth of its own shares.[13]
Takeda has arranged to purchase Cambridge, MA-based Millennium for $25 a share, or a total of $8.8 billion.[3] Takeda recently agreed to acquire Millennium in a deal worth about $8.8 billion.[26] Takeda has been sitting on over $100 billion and an acquisition like the Millennium deal is seen by many.[9] The deal comes close on the heels of rival Eisai Co's $3.9 billion acquisition of cancer specialist MGI Pharma Inc. Takeda had also last month entered into an agreement with Abbott Laboratories to split their 50-50 joint venture TAP Pharmaceutical Products.[13] The $8.8 billion acquisition Takeda announced yesterday gives Japan's largest drugmaker only one product on the market: the blood-cancer medicine Velcade.[24]
Cambridge, Mass. -based Millennium's mainstay product is the blood-cancer drug Velcade, which Takeda believes has the potential to be a worldwide blockbuster. Millennium also has a healthy pipeline of oncology and anti-inflammatory candidates, including a therapy for inflammatory bowel disease that's on track to enter Phase 3 clinical trials later this year or by early 2009.[20] Millennium is best known for the cancer drug Velcade, which Takeda is looking to turn into a global blockbuster. That would go a long way toward overcoming the looming patent expirations for Actos and Prevacid.'' Recently Takeda and Abbott split up their long-time drug development partnership. That move boosted Takeda to the fourteenth largest drug company in the world, but investors have been fretting over the absence of a big takeover.[33] In the Millennium deal, Takeda will get Velcade, an injectable drug primarily used as a second-line treatment for rare blood cancers after other therapies have failed.[22] The Millennium deal, which would add blood cancer drug Velcade to Takeda's portfolio, was reached in just two months of negotiations.[23]
The deal will buy Velcade for Takeda, which is an injectable drug primarily used as a second-line treatment for rare blood cancers after other therapies have failed.[21]
The company is dipping into cash reserves for a shopping spree. In February, Takeda struck a deal to buy biotech giant Amgen Inc.' s Japanese unit and obtained licensing rights for a number of its cancer drugs in Asia.[2] In February it struck a deal with biotech giant Amgen Inc. for that company's Japanese unit and licensing rights for a number of cancer drugs in Asia. Other deals for Takeda include rights to market Cell Genesys Inc.' s prostate cancer vaccine.[4]
The bonuses would be tied to folks sticking around for a year or two after the deal closes, expected in the second quarter. Under the catchy headline " Free Sushi in the Cafeteria! " lab blogger Derek Lowe writes, "No doubt there was a lot of initial fear that this would be a Pfizer-style deal (see below), but as the day went on that didn't seem to be the case." Takeda has been steadily increasing its presence in the U.S., Lowe points out, but the company hasn't neutron-bombed the acquirees, such as Syrrx, now Takeda San Diego. That's a different route than "Pfizer's purchase of Sugen, or Lilly's purchase of ICOS, or JJ's purchase of Scios," he reminds us. The big companies made their deals to get rights to a few drugs on the market or in development and then shuttered or scaled back the scientific workshops. "The folks in the small-company labs quickly found themselves getting those 'What, are you still here?" Lowe writes. "And pretty soon, most of them weren't, voluntarily or involuntarily."[29] Beyond building lavish headquarters and striking licensing deals worth hundreds of millions of dollars to Millennium, the company didn't produce. Its two cancer-fighting drugs, Campath and Velcade, came about the old-fashioned way: Millennium bought the smaller companies that developed the drugs. Millennium has since sold its rights to Campath to Genzyme Corp.[30] Yesterday's deal highlights the company's success with Velcade, a cancer drug discovered by a company that Millennium purchased.[16]
Prevacid's patent expires in 2009. "This deal will boost Takeda's drug-development flow," said Mitsuo Ohmi, a Tokyo-based analyst at Japan Advisory LLC. "Millennium is a leader in genome medicine, with some promising drugs in early development."[22] "Millennium is a leader in genome-based drug discovery with promising drugs in early development,'' said Mitsuo Ohmi, a drug analyst at Japan Advisory LLC. "However, Takeda still needs to do a little more to fully cover the loss of sales once Actos's patent expires.''[24]
Besides current and future products, Takeda said it expects to gain a seasoned management team - with Dunsire remaining at the helm and Millennium's expertise in the research area of protein homeostasis, and an experienced sales force. Overall, Takeda gains an enriched pipeline, an important matter considering two of its biggest sellers, Prevacid in gastric reflux disease and Actos in diabetes, come off patent in 2009 and 2011, respectively. "Millennium greatly strengthens Takeda's global oncology portfolio. and further enhances its pipeline with clinically differentiated, high-quality product candidates," Hasegawa said in a statement.[27] Dr. Deborah Dunsire, Millennium's chief executive and a former leader of cancer research at Novartis, will lead Takeda's global oncology development.[17] "The area of cancer treatments, in which Millennium is particularly strong, is one of our company's most important areas of research and development," Takeda said in a statement.[2]
Takeda has surprised the folks at Millennium with a buyout offer. (They're battening down the hatches over in Japan, and looking for something new). I know several people over at the latter company, and I can imagine that yesterday was one of the less productive days around the labs. No doubt there was a lot of initial fear that this would be a Pfizer-style deal (see below), but as the day went on that didn'''t seem to be the case.[35] The cash offer wasn't difficult for Takeda, since it reports having $20 billion in cash. This is the second billion-dollar deal Takeda has made with a U.S. biotech in slightly more than two months.[27] The deal, the largest for an Asian drugmaker, follows an agreement by Tokyo-based Eisai Co. in December to buy U.S. biotech firm, MGI Pharma Inc., for $3.9 billion.[24] The deal follows Eisai Co.' s December agreement to buy MGI Pharma Inc. for $3.9 billion as Japanese companies seek growth in the U.S. market.[17]
Japanese companies, aided by the dollar's 15 percent decline against the yen in the last 12 months, are seeking growth abroad to counter Japanese government price cuts and a shortage of new medicines from research operations. Takeda, which traces its origins to a medicine wholesale business opened in Osaka in 1781, hasn't released a product in the U.S. since the sleeping pill Rozerem in September 2005.[24]
Takeda's cash bid is a premium of 52.9 percent to Millennium's Wednesday closing price of $16.35.[34] The price represents a sweet 53% premium to Wednesday's $16.35 closing price for Millennium's stock, the Wall Street Journal reported.[3]
The stock closed at $16.36 Wednesday. Shares of Yahoo Inc. were up 1.9%, according to Archipelago, after the Wall Street Journal, citing people familiar with the matter, reported that the internet company and Time Warner's AOL are closing in on a deal to combine their Internet operations.[19] Shares rose $7.99, or 48.9%, to $24.34. Shares of Yahoo! YHOO gathered steam following a report in the Wall Street Journal that it may be close to merging its online operations with Time Warner's TWX AOL in a bid to rebuff Microsoft's MSFT unsolicited offer for the company.[14]
Millennium shares today rose to within the range of Takeda's offer price, surging 49% to $24.34.[25] Investors have long expected a major acquisition by Takeda. Disappointment that it had not yet struck a deal led to a drop in its share price from 6,570 yen ($65.27) in late 2007 to about 5,000 yen ($49.67) in the first quarter.[20] Takeda shares dropped 110 yen, or 2 percent, to 5,300 yen today and have plunged 33 percent the past year, even as Hasegawa announced plans to buy back as many as 34 million shares, made three acquisitions and increased dividend payments. Masatake Miyoshi, a Tokyo-based equities analyst at Merrill Lynch Japan Securities lowered to his recommendation on Takeda to "sell'' from "buy'' today.[24]
Osaka-based Takeda, which has strength in the diabetes, anti-infectives and cardiovascular spaces, adds to that portfolio Velcade (bortezomib), one of the up-and-coming stars of the industry. It is approved for use in rare blood cancers where other treatments fail, and is expected to take in from $320 million to $345 million this year for that indication.[27] Velcade, for rare blood cancers, generated more than $800 million last year as a treatment after other drugs fail.[17]
Millennium said yesterday that Velcade generated about $800 million in worldwide sales last year. Its partner, Johnson & Johnson, markets the drug in 85 other countries.[16] Last year, Velcade sales outside the U.S. were more than $500 million, Millennium said. J&J; paid Velcade royalties of about $80 million on those sales, Millennium said.[24] The U.S. company generated $265 million in sales last year from Velcade, which is sold in more than 85 countries.[13]
Velcade generated more than $800 million in sales last year and some analysts see it as a future blockbuster that could generate more than $1 billion in worldwide sales.[22]
Takeda expects Velcade, which is jointly marketed in the U.S. with Johnson & Johnson (which also markets the drug in other countries), to achieve blockbuster sales of well over $1 billion.[13]
The company's current and forecast sales were part of the appeal for Japan's top drug maker Takeda Pharmaceutical Co.[26] Japanese drug maker Takeda Pharmaceutical Co. said it would buy the company.[30]
The deal also marks the second major U.S. biotech acquisition by a Japanese drug maker in the last few months, as cash-rich Japanese firms look for opportunities to take advantage of the weak U.S. dollar.[16]
The genomics revolution was not a flop. It just needs more time. Millennium Pharmaceuticals Inc., the Cambridge biotech firm that came to symbolize the genomics breakthroughs of the past 10 years, was never able to both develop and market a single drug using its genomic expertise.[30] Cambridge, Mass. -based Millennium Pharmaceuticals Inc. sells drugs including Velcade, a drug used to treat multiple myeloma and lymphoma.[34]
John Maraganore, who worked as a Millennium executive from 1997 to 2002, said the deal could potentially free Millennium from worries about making every quarter's profit figures, allowing it to invest more money in drug development. "They can now realize their full potential," said Maraganore, now chief executive of Alnylam Pharmaceuticals Inc. in Cambridge. Dunsire said she expects the deal to be completed in June.[16] Steven H. Holtzman, who headed business development at Millennium from 1994 to 2001, and is now chief executive of Infinity Pharmaceuticals Inc. in Cambridge, said people misunderstood the impact of genomics.[30]
Biopharmaceutical company Millennium Pharmaceuticals Inc. (MLNM) engages in the discovery, development and commercializing of medicines for cancer, inflammatory bowel, and other inflammatory diseases in the United States.[26]
"I think the lag time is probably longer than eight years." Nobody did more to raise those unrealistic expectations than Mark J. Levin, Millennium's cofounder and longtime chief executive. In December 2001, he told Technology Review that Millennium would use ge nomics to become wildly successful. He said: "Over the next five to 10 years, our goal is to become a company that's leading the world in personalized medicines, a company that is leading the world in productivity, a company with a value of over $100 billion, a company that has five to 10 products on the market that are making a big difference in people's lives, a company with the strongest pipeline in the entire industry."[30] Analysts believe it will soon deliver billions of dollars in annual sales, making it a blockbuster treatment. The drug, now used to treat multiple myeloma, a form of cancer, is undergoing trials to treat other types of cancer, such as non-Hodgkin's lymphoma. Analysts give the company credit for developing a promising pipeline of other cancer and anti-inflammatory drugs, though they are generally years away from being approved for sale.[16] The drug generated more than $800 million last year, compared with $3.4 billion for Actos, the company'''s best- selling diabetes pill.[21] Late last year Eisai Co Ltd (4523.T) agreed to acquire cancer specialist MGI Pharma Inc for $3.9 billion; the deal was completed in January.[23] The deal comes on the heels of rival Eisai Co Ltd's $3.9 billion purchase of cancer specialist MGI Pharma Inc.[6]
Tissue repair company LifeCell Corp. was bought by Kinetic Concepts Inc. for $1.7 billion in cash on Monday. Devon Energy Corp., which said it's selling noncore assets in Nigeria and Texas to an unnamed buyer, is in a deal to sell assets to GEPetrol for $2.2 billion.[31] In February, Takeda announced a deal with Amgen Inc. worth up to $1.2 billion.[31] Takeda shares closed down 2.5%, or 140 yen ($1.39), at 5,140 yen ($51.05) in Tokyo on Thursday prior to the announcement of the deal.[20]
The Millennium deal will also help Takeda continue to diversify beyond Japan, where the drug regulatory process can be slow.[11] Takeda is playing defense with its high cash position. The reason for the very high premium is simple: Big pharma & bio are facing generic competition, weak pipelines and lower pricing power for their "me-too" drugs going forward.They have no choice but to continue doing deals (partnerships and acquisitions)to grow and justify their valuations.[11]
Takeda has been under pressure for years to spend big and buy an overseas firm with a solid drug pipeline to offset an earnings decline before a key patent expires.[5] I did some cursory math and the NPV of Velcade (assumeing a 20% IRR, 6 years of patent life remaining and a generous sales growth rate of 20%) is roughly $2B. Which, of course, leaves ~$6B on the table for an early clinical stage pipeline (no other phase 3s, just phase 1s and 2s). Though, I guess if you have $9B in cash laying around, it's better than sticking it in your ears.[11] Millennium had returned to profitability only recently, and sales of Velcade have been on the rebound after very positive new clinical trial results in early stage multiple myeloma patients and for other related indications last year. Velcade sales were up 42% year over year in the U.S. in the first quarter this year, for example.[32] The arrangement would survive a Takeda purchase, Fanucci and J&J; spokesman Marc Monseau said. A separate agreement with J&J; to use its sales force to promote Velcade in the U.S. will expire at the end of this year unless both parties agree to renew it, Fanucci said.[24]
Johnson & Johnson, based in New Brunswick, New Jersey, will continue to market Velcade outside the U.S. under a co- development agreement with Millennium until the drug's patent expires, said Marsha Fanucci, Millennium's chief financial officer, in an interview.[24] After racking up persistent losses, the company gradually decided to make the switch from research to drug development. The transition was sometimes painful, forcing Millennium to shed hundreds of jobs and narrow its focus. Like many biotechs, many of its promising drugs in development ultimately failed.[16] The biotech industry could see a resurgence of merger and acquisition activity, with BioMarin and Human Genome Sciences as potential targets. Millennium's cancer drug rival Celgene Corp. could see more competitive pressure for its drug Revlimid, Raymond said. AP Writer Mari Yamaguchi in Tokyo contributed to this report.[4] The deal is the latest in a series of acquisitions in the biotech sector, as drugmakers scramble to secure promising pipelines and technologies developed by smaller companies, and it could spur a further wave of merger activity.[23]
Today's deal takes the company in the direction the global pharma herd is moving: Away from old-school primary care drugs for chronic conditions, and toward specialty biotech drugs that command higher prices.[11] The deal could be a boon to Takeda's global presence, given that it already operates a fast-growing subsidiary, Takeda Pharmaceuticals North America Inc., located in Deerfield.[22]
"We aim to become a global leading company in cancer treatments where unmet medical needs are great and where there will be strong business growth," Takeda president Yasuchika Hasegawa told a news conference.[13]
Global pharmaceutical sales will expand $745 billion in 2008, with an expected annual market growth between 5 and 6 percent, according to IMS Health's 2008 Global Pharmaceutical Market and Therapy Forecast.[26] Velcade can generate peak annual sales of $1 billion in the U.S., and $2 billion worldwide, Baird said.[24]
Goldman Sachs analyst May-Kin Ho expects Velcade sales to continue rising, saying the market is underestimating the cancer drug's international growth potential.[4]
After that, with rival drugmaker Celgene (Nasdaq: CELG ) competing against lead drug Velcade in treating multiple myeloma, Millennium experienced a rough couple of years.[32] Signing up with Abbott to form TAP (Takeda-Abbott Pharmaceuticals) some years ago was one step, as was recently buying out that entire partnership. They bought San Diego-based Syrrx a couple of years ago, and now they have a foot on the ground in Cambridge for oncology research. The Syrrx site is now " Takeda San Diego ", but interestingly, Millennium is apparently going to keep its name.[35] When the deal is completed, Cambridge, Mass. -based Millennium will become a wholly owned subsidiary of Takeda and operate as a standalone business unit.[27] I think it would be a sort of fitting end to the Empire that was Millennium if in 18 months Takeda comes back and says that they can not sustain the business with the site in Cambridge open.[29]
After closing, Millennium will run as a standalone business unit for Takeda.[4]
"Takeda took advantage of the strength of the yen against the dollar to pay that premium in cash, to shut down any possible objection from Millennium stockholders about the lack of a competing bid,'' said Chris Raymond, an analyst with Robert W. Baird & Co. in Chicago, in an interview.[24]
Investors jumped at the news. Shares of Millennium (NASDAQ:MLNM) shot up $7.99, or 49 percent, to close slightly under the purchase price at $24.34, it's highest price since 2002.[27] Shares, however, soared 49 percent, or $8.10, to $24.46 in early trading Thursday. Millennium President and CEO Deborah Dunsire said that both companies aim to develop new medicines. "We expect this transaction to help accelerate that vision and deliver tremendous value to patients, shareholders and our employees," Dunsire said in a statement.[2]
Isaly placed a bet on Millennium at just the right time. He said one of his funds, the Eaton Vance Worldwide Health Sciences Fund, owned more than 2 percent of the shares outstanding at an average price just above $10.[30] Millennium's shares rose $8.15 or nearly 50 percent on Thursday to $24.50.[23]
The $25 per share offer is a 65 percent premium over Wednesday's close.[33]
Takeda shares fell 2.5 percent, closing on the Japanese market at 5,410 yen.[27] Takeda shares fell 2.5 percent on Thursday to close at 5,410 yen before the bid was announced, underperforming a 1.3 percent fall in the Nikkei share index. (.N225).[23]
Millennium shares skyrocketed 48.9%, or $7.99, to close at $24.34 on Thursday. [20] Millennium's shares peaked at $86.50 in November 2000, and then went through a long decline.[30]
Massachusetts-based Millennium, with $528 million revenue last year, also has a potential therapy for inflammatory bowel disease, which is expected to enter late stage clinical trials in late 2008 or early 2009.[13] The idea was that if disease-causing genes could be targeted, drug discovery might be accelerated. Millennium quickly attracted tens of millions of dollars in capital and formed relationships with major drug companies, such as Eli Lilly & Co., which hoped to use Millennium's genomics research to develop powerful drugs. It went public in 1996 and by early 2003 had more than 2,000 employees and a prominent campus near the Massachusetts Institute of Technology.[16] "You'll probably see more Japanese companies expanding in the U.S.," said Howard Liang, an analyst with Boston investment bank Leerink Swann & Co. Massachusetts is already home to a galaxy of European drug firms - including Novartis AG of Switzerland, EMD Serono of Germany, and British-based Shire PLC - which have flocked to the state mainly because of its successful companies and elite research universities.[16] "There's no doubt the weak dollar against the yen is making U.S. biotech very attractive right now to potential Japanese buyers," said Les Funtleyder, an analyst with Miller Tabak & Co. in New York.[17] "While today's news is obviously positive for Millennium holders, we anticipate considerable spill-over into other names in mid-cap biotech," said Christopher Raymond, an analyst at Robert W. Baird, in a research report.[23]
The deal must still be approved by Millennium shareholders. If the deal is approved, Millennium would maintain its current corporate name, but as a Takeda-owned company.[2] The deal still has to be approved by Millennium shareholders, but Wall Street expects the process to go smoothly, with a second-quarter close.[4]
The deal, however, is subject to majority acceptance of the offer by Millennium shareholders, the companies said in a joint statement.[13]
Baird's Raymond speculates the deal could bring in an even larger bid, possibly from Millennium's Velcade partner Johnson & Johnson.[4]
Velcade, Millennium's only approved product, treats relapsed multiple myeloma, a cancer of the plasma cell.[17] Velcade, the company's only approved product, treats relapsed multiple myeloma, a cancer of the plasma cell that is an incurable but treatable disease.[22]
Millennium will operate as a wholly owned subsidiary in Cambridge, Mass., and continue to sell Velcade and future oncology products.[22]
"Velcade will be a blockbuster in short order," Dunsire, who joined Millennium in 2005, said Thursday in a conference call with investors. Bloomberg News contributed to this report.[22] Millennium anticipates U.S. approval by June to promote Velcade as an initial therapy.[22] I'''m told that retention bonuses are being offered, along with several other features to try to keep the Millennium operation running. Takeda'''s been increasing its U.S. presence over the years.[35] Our strong desire is to retain Millennium employees, who have created an entrepreneurial and innovative culture," Hasewaga further stated. In a statement, Takeda said it expects that the transaction will increase its earnings starting in the fiscal year ended in March 2010, even before the transaction related amortization.[1] "Our strong desire is to retain Millennium employees, who have created an entrepreneurial and innovative culture," Takeda's chief executive, Yasuchika Hasegawa, said in a statement yesterday.[8]
"Millennium greatly strengthens Takeda's global oncology portfolio," said Takeda President Yasuchika Hasegawa.[20] "Takeda is committed to becoming a global leader in oncology by delivering novel therapies that improve the standards of care for patients. Millennium has strong discovery, development and commercial capabilities led by a well-established management team," he added.[27]
"Millennium is a leader in genome medicine, with some promising drugs in early development."[17] Millennium is conducting human trials with experimental drugs for cancer, heart disease, gastrointestinal disorders and rheumatoid arthritis.[17] Developing cancer drug pipelines has been a top priority for Japanese drug makers which have been late to step into the lucrative business.[7] "Competition is severe, especially in the cancer drug business, so Takeda has had to speed things up.''[24]
I suspect/trust Takeda which provide the more long-term perspective in achievement of success as is the typical of common Japanese business approach. This would be a refreshing difference from most U.S. pharmas these days.[35] I worked some years ago for a textile company in the U.S. which was bought out by Takeda.[35] Takeda, which sank 33 per cent last year, dropped 110 yen, or 2 percent, to 5,300 yen today.[21] Takeda will face low-priced competition to products, including Actos, that account for 40 percent of revenue.[24] Takeda gained the rights to the product Prevacid in heartburn and gastric reflux disease, plus all the remaining TAP commercial and support organizations, and the rights to TAP's pipeline.[27]
Millennium Pharmaceuticals, Inc. MLNM $24.39 +0.05 (+0.21%) [32] In 2001, Millennium promised much more. Its cofounder, venture capitalist Mark J. Levin, boasted that Millennium would be worth more than $100 billion within a decade.[16] Millennium rose 49 percent to $24.34 yesterday in Nasdaq Stock Market composite trading.[21] Millennium rose 5 cents to $24.39 at 4 p.m. in Nasdaq Stock Market composite trading today, following a 49 percent gain on April 10.[24]
The agreement includes $123 million in upfront and potential development milestone payments from Kyowa to ArQule, including a $30 million cash licensing payment. It includes undisclosed sales milestone payments, and upon commercialization, ArQule will receive double-digit royalties from Kyowa on net sales of ARQ-197. [36] The drugmaker had 1.77 trillion yen ($17.5 billion) of cash as of Dec. 31, according to financial statements.[24] Even adjusted for inflation, it ranks larger than Cambridge-based Biogen Inc.' s purchase of Idec Pharmaceuticals Corp. of San Diego five years ago for $5 billion.[16]
Microsoft, which has made a $31-a-share offer for Yahoo!, is not sitting idle. It is reportedly talking to News Corp. NWS to partner on its Yahoo! bid.[14] Drug makers can now target narrow population groups with specific genetic vulnerability to a disease. He admitted, "It's clear in hindsight that genomics is not the silver bullet in drug discovery." Samuel D. Isaly, founder and managing partner of OrbiMed Advisors LLC, a New York firm that manages life sciences mutual funds, said genomics has turned out to be a lot like rehabbing an old house: "It took longer and it cost more than we expected."[30]
Though the graying of Japan's population is driving up demand for pharmaceuticals, the country's shaky public finances has led the government to cut drug prices.[20] Cross Research upgraded the stock to buy from hold with a price target of $11.[14] I also find it interesting that the company hasn'''t decided to put up a big research site in one location and call it '''Takeda ''' US''', but have rather taken the retail approach. How easy managing those sites will be depends on what approach they take. For now, it looks like they'''re going to take the easier one, which is to let Millennium carry on in their own style (albeit with more money).[35] The Millennium acquisition is the latest in a flurry of M&A; activity by Japanese drugmakers.[23]
Rite Aid Corp. shares fell 6.9% after the pharmacy chain said it swung to a fiscal fourth-quarter loss, and projected results for the new fiscal year below Wall Street's expectations. [19]
SOURCES
1. Takeda Buys Millennium; Aims to Become Global Leader
2. Japan's Takeda to acquire Millennium Pharma - Norwood, MA - The Daily News Transcript
3. Takeda to buy Millennium for $8.8 billion - Medical Marketing and Media
4. The Associated Press: Millennium Pharma Soars on Takeda Bid
5. Analysts mixed on Takeda's $8.8 billion Millennium buy | Reuters
6. Takeda to buy Millennium Pharma for $8.8 billion-Intl Business-Business-The Times of India
7. Takeda to develop cancer drug business through Millennium
8. Takeda's 8.8B for Millennium includes bonuses for workers - BostonHerald.com
9. Therapeutics Daily
10. Takeda Offers $8.8 billion for Biotech Millennium - International Business Times -
11. Health Blog : Small Drug World: Takeda Dropping $9 Billion on Millennium
12. FT.com | Takeda bids $8.8bn for Millennium
13. domain-b.com : Japan's Takeda to acquire Millennium Pharma for $8.8 billion
14. Thursdays Winners & Losers: Millennium Pharmaceuticals | Winners & Losers | BMY IKN MLNM MSFT NSM SMCI TWX WYE YHOO - TheStreet.com
15. Japan's Takeda to buy Millennium for $8.8B
16. Mass. biotech is sold for $8.8b - The Boston Globe
17. Japanese drug maker Takeda to acquire Millennium - Los Angeles Times
18. Millennium's healthy valuation - BloggingStocks
19. MarketBeat Blog - WSJ.com : Premarket: Deal of the Millennium
20. Takeda Takes Out Millennium - Forbes.com
21. Takeda Pharmaceutical to buy Millennium - The Money Times
22. Takeda to buy U.S. drug company -- chicagotribune.com
23. KPLC 7 News, Lake Charles, Louisiana |Takeda to buy Millennium Pharma for $8.8 billion
24. Bloomberg.com: Japan
25. Eyewitness News WPRI / FOX Providence - Providence, Rhode Island News, Weather, Traffic and Sports | Japanese company pays $8.8 billion for Cambridge, Mass.-based Millennium
26. BeaconEquity.com - Millennium Pharmaceuticals Inc. (MLNM) Shares Climb 49 percent on $8.8 Billion Acquisition by Takeda
27. BioWorld Today
28. Takeda Reaffirms Oncology Goals With $8.8 Billion Millennium Acquisition
29. Health Blog : Takeda Dangles Bonuses to Keep Brainiacs at Millennium
30. Whatever happened to the next big thing? - The Boston Globe
31. Strategics continue to buoy M&A; numbers, Takeda buys Millennium (Corporate Dealmaker)
32. End of the Line for Millennium
33. Takeda makes $8.8B bid for Millennium - FierceBiotech - Biotechnology Articles, Biotech Industry News, FDA Approval News
34. Out of the Gate: Millennium Rockets - AP - National Business News - Portfolio.com
35. Free Sushi in the Cafeteria!. In the Pipeline:
36. Untitled
GENERATE A MULTI-SOURCE SUMMARY ON THIS SUBJECT:
Please WAIT 10-20 sec for the new window to open...
You might want to EDIT the default search query below:
Get more info on Takeda Faces Generic Threat Even With Millennium Buy (Update5) by using the iResearch Reporter tool from Power Text Solutions.
 |
|  |
|
