Healthcare & Life Sciences News & Trends: Sep Week 3

1. Business Moves

i. KKR and GIC to Sell Majority Stake in Metro Pacific Health

KKR and GIC are preparing to sell their combined 80% stake in Metro Pacific Health, the largest private healthcare group in the Philippines. This sale, potentially happening by early 2025, is estimated to value the company at US$3.2 billion. Metro Pacific Health operates 24 hospitals and several outpatient and cancer care centres. KKR and GIC originally invested US$680 million in the group back in 2019.

Takeaway: This transaction, managed by major financial institutions, reflects the growing investment interest in emerging market healthcare sectors. It may influence the valuations of similar healthcare companies across Asia as investors seek fresh opportunities in this rapidly expanding sector. With ageing populations and heightened health awareness, these deals also have the potential to reshape healthcare access and quality, establishing new standards for investors and patients.

Read the full article about KKR and GIC’s deal.

ii. Banks Offer Over 10b Euros in Competition for Sanofi

Sanofi attracted bids from Clayton Dubilier & Rice (CD&R) and PAI Partners as it enters the final stages of selling its consumer health division. More than 10 billion euros in debt is being raised by 15 banks eager to finance this leveraged buyout, especially after the recent US Federal Reserve interest rate cut. Banks are offering 7.5 to 7.8 billion euros in senior debt and 1.2 billion euros in revolving credit, while private lenders are preparing 1.5 to 2 billion euros in junior debt.

Takeaway: These transactions are among the most profitable in finance, especially following the first US Federal Reserve rate cut in four years, which has sparked optimism that borrowing costs may be easing. However, the risks remain prominent in many minds: just two years ago, lenders faced significant losses from financing large corporate buyouts, leaving them stuck with tens of billions in unsold “hung debt.” The leverage offered by banks is expected to be around six times the unit’s earnings, which is relatively high by recent standards. The figure further rises to 7.5 times when private credit is included.

Read the full article about banks’ interest in Sanofi.

iii. Novartis Enters $1b Protein Therapeutics Deal with Generate

Novartis signed an over $1 billion deal with Generate Biomedicines to develop protein therapeutics for multiple medical indications. This partnership centres on Generate’s AI platform, which is designed to accelerate the discovery of novel medicines. Novartis will provide $65 million upfront, with over $1 billion in milestone payments and royalties to follow. This collaboration aligns Novartis’ expertise in clinical development with Generate’s AI-driven biology platform, potentially speeding up the creation of transformative treatments.

Takeaway: Generate, a biotech founded by Flagship in 2018, is no stranger to strategic partnerships and is also known for its significant fundraising. It has raised over $640 million in the past two years. Its pipeline includes two clinical-stage monoclonal antibody candidates targeting COVID-19 and severe asthma, and it has plans to advance additional assets in areas like cancer and solid tumours. Some of its partner institutions include Amgen, MD Anderson and Roswell Park.

Read the full article about Novartis’s deal with Generate.

iv. AstraZeneca Enters AI Partnership with Immunai

AstraZeneca entered a collaboration with Immunai, a biotechnology firm specialising in AI models of the immune system. The partnership involves an $18 million payment to Immunai to enhance the efficiency of certain cancer drug trials, with the potential for future expansion of the partnership. This partnership will leverage Immunai’s single-cell genomics and AI platform to optimise clinical decision-making, including dose selection and biomarker identification.

Takeaway: This is part of AstraZeneca’s broader strategy to integrate AI into drug discovery and development, and it builds on previous deals like a $247 million agreement with Absci.

Read the full article about AstraZeneca’s partnership with Immunai.

2. People: Sanofi

Sanofi: Mike Quigley, PhD, is set to become the new Chief Scientific Officer (CSO) and Global Head of Research at Sanofi starting September 30, following a diverse career in biotech and Big Pharma. He will succeed Frank Nestle, MD, who left amid Sanofi’s global R&D overhaul. Quigley brings a wealth of experience from his roles at Gilead, Bristol Myers Squibb, and Janssen, as well as leadership positions in biotech companies. He will focus on driving innovation, fostering collaboration, and attracting top talent to Sanofi.

Read the full article about Mike Quigley’s role at Sanofi.

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Image Credits:

• Bristol-Myers Squibb Co.
• DealStreetAsia
• Generate Biomedicines