As measured by its current market cap, Vertex Pharmaceuticals (VRTX, Financial) would be the most expensive among the 10 companies identified by Fierce Biotech as the top M&A targets, with Adaptimmune Therapeutics plc (ADAP, Financial) being the cheapest.
Year-to-date, Vertex’s shares are up about 5% to $233.41, giving the Boston-based biotech a market value of more than $59 billion. The majority of the company’s 2021 revenues of about $7.5 billion were generated by Trikafta, its cystic fibrosis medication.
Investors are looking for Vertex to expand its offerings beyond cystic fibrosis and beef up its pipeline. The company is making strides toward these goals with a successful clinical trial of its new kidney disease treatment and one for diabetes. The diabetes drug could prove to be a big winner given it restored insulin creation and regulation in one patient without the need for a donor cell transplant.
A takeover of Vertex would be an enormous deal, both literally and figuratively. A mega-buy of this size would certainly dwarf the $74 billion Bristol-Myers Squibb Co. (BMY, Financial) paid for Celgene and the $63 billion AbbVie Inc. (ABBV, Financial) shelled out for Allergan, both in 2019.
Of course, Vertex could turn the tables by pursuing an acquisition of its own. It’s been speculated that the company has its eyes on CRISPR Therapeutics (CRSP, Financial), a partner of Vertex since 2015 in a $900 million upfront deal designed to be first to market with a gene therapy for two blood disorders. Valued at $4.7 billion, U.K.-based CRISPR would be easily digestible.
The biggest bargain among the 10 buyout candidates would likely be Adaptimmune, which is currently valued at $495 million, about half what it was just a year ago. The U.K.-based firm’s share price has languished despite a pact with Roche (RHHBY, Financial) that could eventually bring in $3 billion and is aimed a five cancer targets.
Adaptimmune could become more coveted if its clinical trials provide promising results, but that may come too late to pull off a deal this year. But the further along testing goes with no hitches, the higher a price the company could command.
The next big deal that materializes will be the first this year, and some analysts think things should really start percolating next month.
Others who made the Fierce Biotech list of potential acquisitions and their respective market caps are:
- Alnylam Pharmaceuticals Inc. (ALNY, Financial), $18.4 billion
- Biomarin Pharmaceutical Inc. (BMRN, Financial), $16.9 billion
- Ionis Pharmaceuticals, Inc. (IONS, Financial), $4.8 billion
- Karuna Therapeutics, Inc. (KRTX, Financial), $3.3 billion
- Mirati Therapeutics, Inc. (MRTX, Financial), $6.0 billion
- Sarepta Therapeutics Inc. (SRPT, Financial), $7.1 billion
- UniQure (QURE), $802 million
