Midatech Pharma (AIM:MTPH) (Nasdaq:MTP), a pharmaceutical company focused on oncology and other therapeutic drugs, has completed its acquisition of an anti-nausea drug from Galena Biopharma Inc. (Nasdaq:GALE) of Portland, Oregon.
Midatech, based in Oxfordshire, United Kingdom, is paying $3.75 million upfront in cash, with further cash payments bringing the total to up to $26 million if sales goals are reached. The drug, Zuplenz, a form of ondansetron, is marketed in the U.S. for prevention of nausea and vomiting caused in cancer patients by chemotherapy, radiation therapy and surgery. According to Midatech, the drug has a target market of $4.6 billion by 2018.
This is Midatech’s second oncology related acquisition in recent months. In June, Midatech announced it was acquiring DARA BioSciences Inc. (Nasdaq: DARA), now known as Midatech Pharma US Inc., a drug company focused on medicines to help patients manage side effects from cancer treatments.
The last seven months of 2015 have been busy in the mid-market pharma space:
- Earlier in December, Perrigo Co. plc (NYSE: PRGO) announced it was buying generic forms of Retin-A—the anti-aging skin treatment--from Matawan Pharmaceuticals LLC, a subsidiary of Rouses Point Pharmaceuticals LLC of Bonita Springs, Florida.
- In November, Eiger BioPharmaceuticals Inc. agreed to acquire a majority interest in Celladon Corporation (Nasdaq:CLDN) for $39.5 million, with backing from new investors HBM Healthcare Investments, RA Capital Management, Sabby Management, Sphera Global Healthcare, Perceptive Advisors and Monashee Capital Partners, and existing Eiger stockholders ViVo Capital and InterWest Partners.
- Also in November, Perrigo Co. plc (NYSE: PRGO) agreed to buy Entocort, a drug for treating Crohn’s disease, from AstraZeneca plc (LON: AZN) for $380 million.
- In July, Pharma Major Lupin Ltd. of Mumbai announced it was acquiring Gavis Pharmaceuticals LLC, a generic drug maker in Somerset, New Jersey, and Gavis’s Novel Laboratories Inc. for $880 million.
- Also in July, Cathay Capital Private Equity announced it had invested in Paris-based Cenexi Group, a pharmaceutical development and manufacturer and a former subsidiary of the Roche Group.
- In June, a consortium headed by CVC Capital Partners acquired a controlling interest in Alvogen, a Pine Brook, New Jersey, drug maker, from the Pamplona Capital Management private equity firm.