Pharma BD Deal Intelligence

Salix Pharmaceuticals / Oceana Therapeutics, Inc.

2011 · Acquisition/Merger · $300M · Complete

WRONG BY 46 POINTS
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The coverage arc

Nov 08, 2011 Salix Pharmaceuticals Form 8-K Exhibit 99.1 Bullish

CFO Adam Derbyshire: 'We believe peak-year sales for Solesta could exceed $500 million. We expect the transaction to be modestly accretive in 2012 and highly…

Nov 09, 2011 Genetic Engineering & Biotechnology News (GEN) Bullish

Salix CEO Carolyn Logan said peak-year sales for Solesta could exceed $500M and the deal would be modestly accretive in 2012 and highly accretive thereafter.

Dec 20, 2011 SEC EDGAR (Salix 8-K Ex 99.1) Neutral

Definitive proxy/8-K filing confirming all-cash $300M acquisition of Oceana Therapeutics closed December 20, 2011, expanding Salix's portfolio with Solesta and…

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Salix acquired Oceana Therapeutics in an all-cash $300M deal to gain Solesta (FDA-approved May 2011 for fecal incontinence) and Deflux (pediatric VUR). Closed December 20, 2011. Solesta peak-sales potential cited at >$500M.

Did it work? Outcome assessment

Strategic verdict
Failed to Achieve
Financial impact
Dilutive
Pipeline outcome
Mixed

Key facts

Related deals — scored

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Salix Pharmaceuticals / Oceana Therapeutics, Inc. (this deal)2011$300M29
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Takeda Pharmaceutical Company Ltd. / Millennium Pharmaceuticals2003$8.8B82
Bristol-Myers Squibb Company / Celgene Corporation2019$74.0B77
Biogen Idec Inc. / Elan Corporation plc (Tysabri rights)2013$3.2B77

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