Getting acquired at a nice premium can be a fitting end to any company's turnaround. On Thursday, Rule Breakers pick Millennium Pharmaceuticals
Takeda's buyout is ironic because in the past few years, Millennium has been the one trying to make acquisitions: It even failed in a bidding war with Genzyme
Millennium had returned to profitability only recently, and sales of Velcade have been on the rebound after very positive new clinical trial results in early stage multiple myeloma patients and for other related indications last year. Velcade sales were up 42% year over year in the U.S. in the first quarter this year, for example. Takeda's proposed $25-a-share buyout affirms Velcade's resurgence and Millennium's steadily progressing biologics drug pipeline.
The Millennium deal is expected to close sometime this quarter. Takeda has been making a lot of bets in oncology and biotech recently, like its deal with Cell Genesys
Over the past two years, biopharmaceutical assets have been hot commodities, compared with their small-molecule drug peers. There have been buyout rumors and interest about every single one of the biggest biopharmas that large-cap drugmakers could afford, from Genzyme to Biogen Idec
Millennium may be the first major biopharma acquisition of 2008, but I doubt it will be the last.