Tristan Cesar Mañalac’s Post

*GSK sells off remaining stake in Haleon* Sale of 4.2% holding raises £1.25bn for pharmaceutical group as it shifts focus to high-value drugs GSK has sold its remaining stake in Haleon, the consumer healthcare company it spun off and listed in London in July 2022, raising £1.25bn and underscoring how pharmaceutical groups are streamlining their businesses to focus on high-value drugs. The sale of the 4.2 per cent stake marks the end of the FTSE 100 company’s links to the maker of Panadol painkillers and Sensodyne toothpaste. GSK on Friday said it had sold more than 385mn shares at 324p a share, representing a 2.6 per cent discount to its closing price of 332.4p on Thursday. The British pharmaceutical company’s exit from Haleon was anticipated. The group had made three previous stock disposals since May 2023, when it held 12.9 per cent of the spin-off’s shares. The company said its exit was “consistent with its previous commitments to monetise its holding in a disciplined manner.” In total, stock disposals over the past year have helped GSK raise just under £4bn, which can be redirected to reducing debt or for mergers and acquisitions. Haleon was formed in 2019 as a joint venture of Pfizer and GSK’s consumer health assets. The decision to list the division in 2022 marked the largest public offering in London in a decade. It came after years of pressure from shareholders, with activist investor Elliott Advisors building a stake in the UK drugmaker and pushing GSK to speed up the process. https://lnkd.in/du4hdZg3

Over the last decade, the top ten biopharma companies experienced a collective sales increase of approximately $160 billion. However, the growth trajectories of individual companies, such as BMS and AbbVie, differed significantly. AbbVie's remarkable growth stemmed from the unprecedented success of Humira, surpassing initial expectations by a wide margin. Despite projections suggesting Humira's sales would peak at around $12 billion by 2016, the drug continued to thrive even after facing competition in 2023, reaching over $21 billion in annual sales, nearly double the initial forecast. Conversely, BMS's notable expansion occurred through the transformative Celgene deal in 2019, effectively doubling the company's size. Despite achieving growth through distinct strategies, the impact on shareholders varied considerably: AbbVie's stock surged threefold over the decade, while BMS's experienced a more modest increase of just under 20%. As the industry braces for upcoming losses of exclusivity (LOEs) on key drugs, prudent evaluation of mergers and acquisitions (M&A) is essential to avoid overpaying and potentially yielding subpar returns.

Strides announces nod from Equity shareholders, secured creditors for creation of OneSource Strides Pharma Inc. Science Limited has announced that it has secured the approval of its equity shareholders and secured creditors with overwhelming majority, along with those of OneSource Specialty Pharma Limited and Steriscience Specialties Private Limited, in meetings convened under the guidance of the Hon'ble National Company Law Tribunal (NCLT). All the secured creditors who voted on the Scheme for the three Companies in their respective meetings, were in favour of the Scheme. In September 2023, Strides announced its strategic initiative to create OneSource as an Independent Specialty Pharma CDMO by integrating the Oral Technologies (Soft Gelatin Capsules) business from Strides, Sterile Injectables business of SteriScience Specialty Private Limited and the Biologics and high-end drug devices combination business of OneSource (erstwhile Stelis). Arun Kumar Komandur Badree #stridespharmasciencelimited #Strides #onesourcespecialtypharmalimited #sterisciencespecialtiesprivatelimited #NationalCompanyLawTribunal #NCLT #ContractDevelopmentandManufacturingOrganization #CDMO

🔬💊 Reflecting on a Decade of Biopharma Growth Over the past 10 years, the ten largest biopharma companies witnessed a staggering growth of approximately $160 billion in sales. This remarkable expansion underscores the dynamic evolution of the biopharma industry and its pivotal role in addressing global health challenges. It's fascinating to observe the transformative advancements and innovations that have propelled this growth. From breakthrough therapies to cutting-edge technologies, the landscape of biopharma has undergone significant changes, reshaping the way we approach healthcare and treatment paradigms.

Over the past 10 years, the ten largest biopharma companies grew their sales by ~$160B. But how did some, like BMS & AbbVie, grow much more than others? BMS and AbbVie took very different routes to achieve their growth. AbbVie's growth was driven by the fact Humira powered above even the loftiest initial expectations: When AbbVie was spun off from Abbott into an independent public company in 2012, the consensus view was Humira sales would peak at ~$12B by the time it lost exclusivity in 2016. Both those assumptions were massively understated: Humira only faced competition in 2023, and when it did, it was doing $21B+ in annual sales, almost 2x the forecast at the time. For BMS, it was the transformational Celgene deal in 2019 that essentially doubled the size of the company. But while both approaches achieved overall growth, they had very different outcomes for shareholders: while AbbVie's stock has tripled over the past 10 years, BMS's is up just under 20%. As the industry navigates upcoming LOEs on several key drugs, it must ensure that any M&A is done at reasonable valuations, because as history shows, growth for growth's sake will result in subpar returns.

This chart shows where the growth in pharma was. Further analysis can help understand if the growth was for a product or in a therapeutic area or even a novel technology? For the next 10 years, will be interesting to see the growth Novo Nordisk and Eli Lilly and Company will generate!

Growth of Top 10 Biotech companies in last 10 years.

Transactions in the pharmaceutical space have long benefited from tried and tested approaches from competition authorities, but flexible and creative notification requirements coupled with new theories of harm has made the review process less predictable. Together with Maria Raptis, Julia Zhu and Marta Navarro we take stock of global merger control developments in the pharmaceutical space. https://lnkd.in/eP-ZUe7S

AbbVie almost tripled revenue, expanded X6 market capitalization, invested 63Bn in innovation/ R&D to help leave remarkable #impact on 60 Million treated pts. annually Proud being part of 50k talented team to help building the growth platform that driving a top teir performance over last #decade. Since inception 💊Single to 5 blockbuster medicines 💰18bn to 54bn revenue 📈 54bn to >300 Mkt. Cap. #People #Passion #Possibilities #AbbVieLife #abbvielife #pharmaindustry #biopharmaceutical #pharmaceutical #growth Not an investment advice