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In mid-March, Pfizer announced the acquisition of ADC drug company Seagen for a total price of $43 billion, a premium of 33%, significantly higher than Merck's **, which has boosted global M&A sentiment to a certain extent.
At the beginning of the year, there were also many institutions**, and with the significant reduction of global equity assets**, 2023 may be a big year for mergers and acquisitions in the global pharmaceutical industry. year-endLooking back, it is true that there have been frequent mergers and acquisitions of more than $1 billion this year, and the total amount of TOP10 mergers and acquisitions has nearly doubled that of 2022. The popularity of M&A can increase exponentially, the acquirer has sufficient cash flow on hand, or is in urgent need of structural business reform, etc., and the strategy, experience, and execution of the acquiree's Biotech management are also crucial. In Roche's $2.7 billion deal to buy Carmot, we found that Carmot appointed a new board member, Charles W., in JulyNewton, Newton has rich practical experience in pharmaceutical mergers and acquisitions. Looking at Cerevel's deal from this point of view, the same finds,Cerevel's CEO, Ron Renaud, has been on the job for less than six months, but in mergers and acquisitions have a wealth of"CEO Experience".。Prior to that, Ron Renaud served as CEO of two companies, both of which were successfully acquired by MNC. Ron Renaud has completed a $15.8 billion M&A deal and is already a Deal King CEO in the eyes of shareholders. $8.7 billion worth of CEO appointments
It has only been half a year since I joined the company
In the last month, among the pharmaceutical giants, AbbVie was particularly conspicuous. In just a few days, it made two consecutive moves, and spent nearly $20 billion to acquire Immunogen, an ADC pharmaceutical company, and Cerevel, a CNS pharmaceutical company.
Cerevel in 2018 byBain Capital and PfizerCo-founded, focusing on the field of CNS drugs, the pipeline comes from Pfizer. Two years after its establishment, it was listed on the NASDAQ in 2020. 
Cerevel pipeline, screenshot from Cerevel's official website From the perspective of the pipeline progress on the official website, Cerevel has a number of clinical-stage and preclinical drug candidates, involving psychiatric disorders, epilepsy, Parkinson's disease (PD), etc. Among them, the fastest advanced pipeline dopamine D1 D5 receptor partial agonist T**Apadon, which is in phase 3 clinical trials, has the potential to become the best-in-class of Parkinson's disease. The other core pipeline is Emraclidine, a highly selective targeted muscarinic M4 positive allosteric modulator, which is in Phase 2 clinical trials for psychiatric disorder symptoms. In addition to T**Apadon and Emraclidine, Cerevel has a number of pipelines with demonstrated clinical potential, and the company's potential value is very high. For most biotechs, the ultimate destination is not to become bigpharma, but to be acquired by large companies with first-in-class or best-in-class pipelines, which maximizes the clinical value of the pipeline and realizes the return of original capital. Cerevel is a good example of thisIts pipeline is consistent with the Parkinson's indications that AbbVie focuses on in the CNS field。AbbVie itself holds a combination of levodopa carbidopa for improving motor fluctuations in patients with advanced PD, and it took 6The $500 million acquisition of Mitokinin is also for the latter's main pipeline, the potential first-in-class Parkinson's drug MTK-458. Another key factor in Cerevel's ability to close the deal with AbbVie was its CEO, Ron Renaud. Ron Renaud joined Cerevel full-time as CEO in June 2023At the time of the deal, Ron Renaud had been working for less than six months. Why Ron Renaud joined Cerevel and was able to complete the $8.7 billion deal in such a short period of time may provide some clues from Ron Renaud's past experience. 70.$500 million M&A experience
Judging from the information on Ron Renaud's LinkedIn homepage, before joining Cerevel, Ron Renaud wasBain Capital(Bain Capital).(September 2022 – June 2023), in:Trasnlate Bio serves as CEO (November 2014 - November 2021), in:IDENIX Pharmaceuticals serves as Chairman and CEO(October 2010-August 2014). Ron Renaud's joining Cerevel as CEO is more like a kind of post-investment management at Bain Capital, but why Ron Renaud was selected starts with two earlier CEO experiences. Idenix is a company focused on viral hepatitis drugs. In October 2010, he was appointed Chief Financial Officer and Commercial Officer of idenixRon Renaud was promoted to CEO。Four years later, the market for anti-hepatitis C drugs has reached a new inflection point. February 10, 2014GileadWhile holding the blockbuster sofosbuvir (sales reached $2.3 billion in the first quarter of 2014).Its anti-hepatitis C dual combination ledipasvir sofosbuvir combination tabletsFiling for listing with the FDAAbbVieofTriple combination ABT-450 R ABT-267 ABT-333It's also about to come out. At that time, Merck had already spent a lot of effort on anti-hepatitis C drugs, but the competitiveness and timeliness of the pipeline were still insufficient. In June 2014, Merck announced that it would use:38.$500 millionThe total value of the acquisition of idenix complements its pipeline with the NS5A inhibitor samatasvir and IDX21437 of the same drug type (nucleotide analogue) as Gilead sofosbuvir. The premium for this deal is 239%., while Gilead paid only a premium in 2011 when it acquired Pharmasset, a hepatitis C drug development company, for $11 billionWith a premium percentage difference of more than three times, then-CEO Ron Renaud completed his first M&A deal. Following Merck's acquisition of IDENIX,In the same year, Ron Renaud joined a start-up, Trasnlate Bio, and also served as CEO。Trasnlate is a company focused on developing mRNA drugs. In 2021, Trasnlate successfully capitalized on the mRNA vaccine wind during the epidemic and reached an M&A transaction with Sanofi for a total value of about $3.2 billion, a premium of about 56%. Twice led Biotech to achieve a total of up to 70With a $500 million acquisition, it was only natural that Ron Renaud would then join Bain Capital to focus on identifying early-stage valuable projects. WhileBain Capital seems to value his ability to lead Biotech in M&A pursuitsNine months after joining Bain Capital, Ron Renaud joined Cerevel, a company funded by Bain Capital. Living up to expectations, Ron Renaud achieved $8.7 billion in M&A transactions in just six months. Ron Renaud takes the charisma of a CEO to the extreme. summary
Summary
Biotech's strength lies in its innovation and flexibility, while its disadvantage lies in the ability to execute is limited by resources, especially in the later stages when the product is about to be marketed. However, for large pharmaceutical companies, listing and commercialization resources are their advantages, and it is a win-win situation for both parties whether through cooperation or mergers and acquisitions. To be able to complete large-scale mergers and acquisitions, pharmaceutical companies have sufficient budgets, pipelines and technology platforms, and it is equally important for biotech's management to have strategy, experience, and clear goals. Which biotech will Ron Renaud join as CEO in the future?
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