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Bloomberg
For a masterclass in the upside potential of pharma M&A, look no further than Takeda Pharmaceutical Co.s sale of an eye drug to Novartis AG. By one measure, the deal represents a 2,025% return.
Shire Plc, which Takeda bought in January, obtained the assets through a 2013 acquisition. It paid $160 million upfront to gain the late-stage experimental drug, now sold as Xiidra, and agreed to potential undisclosed future payments.
Novartis is paying Takeda at least $3.4 billion for the
treatment, plus as much as $1.9 billion more in milestone payments. Based on agreed upfront cash portions of the two deals, that’s quite a return for a bet on development-stage drug made.