Another biotech merger albeit a smaller one
Commonwealth Biotechnolgies (CBI)of Richmond, VA will buy Mimotopes, an Australian company for $5.8 million.
TimesDispatch.com | Biotech firm sets major merger:
The details are interesting in that CBI will issue 2.15 million shares of its stock to PharmAust Chemistry Ltd. who will then own 40% of CBI. According to the article, CBI wants to get into the drug discovery aspect which is valued at ~%7 billion by 2009. It is interesting since several drug discovery based companies have been acquired or gone out of business in recent years. While I think drug discovery will continue to be important, I think it will see major price pressures and that this means more centers in China and India. I see a certain decline in drug discovery houses in the US. I’m not sure where Australia comes out in this discussion but the labor costs are almost certainly higher than in China or India.
CBI is a biotech drug and diagnostic contract services company and Mimotopes supplies lab quantities of research-grade peptides.
I’m not really familiar with either of these companies so it is hard to judge the value here. However, since I’ve been focusing on the number and size of mergers in this area, I at least wanted to mention this one.
Technorati Tags: Commonwealth Biotechnolgies, pharma M&A, pharmaceutical deals, Mimotopes
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