Pharma BD Deal Intelligence

Indevus Pharmaceuticals, Inc. / Valera Pharmaceuticals Inc.

2006 · Acquisition/Merger · $120M · Complete

Indevus paid a steep premium — over 40% — in an all-stock deal worth roughly $120M ($7.75/share plus up to $3.50/share in contingent payments) to fold Valera's Vantas into its urology platform, a bet the companies called an instant path to specialty leadership.

Outcome grade pending — assessed 5 years post-close.

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The coverage arc

Dec 12, 2006 BioSpace (Indevus/Valera announcement) Bullish

Indevus CEO Glenn Cooper: the acquisition 'firmly establishes Indevus as an emerging leader in the specialty areas of urology and men's health'; transaction…

Dec 12, 2006 Indevus/Valera joint merger conference call transcript (SEC Form 425) Bullish

Indevus CEO Cooper: the deal 'takes two very good, but relatively small specialty biopharmaceutical companies and creates out of the box a larger, stronger and…

Apr 18, 2007 BioSpace Neutral

Indevus and Valera completed the merger on April 18, 2007 following stockholder approval, formally combining Vantas and Sanctura under one urology-focused…

Source summaries from our enrichment pipeline; follow links for originals.

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Urology/endocrinology; stock deal; Vantas (histrelin) and Supprelin

Key facts

Disease & market context

Advanced (palliative) prostate cancer and central precocious puberty

218K US cases/yr · $2.0B US LHRH agonist prostate cancer market (steady-state, 2 billion+ globally)

Disease Overview

Advanced prostate cancer is treated with androgen deprivation therapy, most commonly LHRH (GnRH) agonists that suppress testosterone to castrate levels for palliative disease control. Central precocious puberty (CPP) is a rare pediatric endocrine disorder where children experience pubertal onset before age 8 (girls) or 9 (boys), driven by premature HPG-axis activation; chronic LHRH agonist therapy delays progression.

Competitive Landscape

By 2006 the LHRH agonist class for advanced prostate cancer was a $2B+ global market dominated by Lupron Depot (leuprolide, TAP/Abbott), Zoladex (goserelin, AstraZeneca), Eligard (leuprolide, Sanofi/Tolmar) and Trelstar (triptorelin, Watson) — all injectable depot formulations dosed every 1-6 months. Valera's Vantas (histrelin) differentiated as the only 12-month subcutaneous hydrogel implant, delivering the most potent LHRH agonist available continuously for a full year, compelling for compliance-challenged or travel-burdened patients. The deal gave Indevus — a urology/men's-health specialist already marketing Sanctura (trospium, OAB) and Delatestryl (testosterone) — a marketed urology asset plus Supprelin LA, the same histrelin implant repurposed for central precocious puberty, which secured FDA approval in May 2007 and became the first 12-month implant in CPP. CEO Glenn Cooper framed the deal as establishing Indevus 'as an emerging leader in the specialty areas of urology and men's health'. Endo Pharmaceuticals subsequently acquired Indevus in early 2009 for ~$370M plus CVRs.

Related deals — scored

DealYearValueOutcome
Indevus Pharmaceuticals, Inc. / Valera Pharmaceuticals Inc. (this deal)2006$120M
Indevus Pharmaceuticals, Inc. / Schering AG2005$30M
Eli Lilly and Company / ICOS Corporation2006$2.3B87
Crucell N.V. / Berna Biotech AG2006$450M85
Lonza Group AG / Cambrex Bioproducts and Biopharma businesses2006$460M83
Reckitt Benckiser plc / Boots Healthcare International2006$3.4B82
Genentech, Inc. (Roche Group) / Tanox Inc.2006$919M80

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