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"We view this transaction as relatively inexpensive for bringing three mid-clinical stage assets to OPKO, with TT401 and TT701 more likely to be the future development focus," says Yale Jen, managing director and senior biotechnology analyst at investment firm Laidlaw.
"This year we will look to plant the seeds for future growth through the acquisition of smaller, earlier stage assets and to incubate opportunities both inside and adjacent to our existing businesses," IAC CEO Joey Levin wrote in his shareholders' letter earlier this month.
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A pattern was repeated across Russia, Ukraine and India and it was essentially a three stage asset-stripping process.
This of course won't mean that all these newer investors in the early stage "asset class" will win with big returns.
"We can go out and buy some late-stage assets," he said, referring to drugs nearing approval.
"This investment enables our shareholders to gain exposure to four high-quality, late-stage assets within the large and growing global respiratory market," he said in a statement.
In a press release Okairos said the deal included a "small number of early-stage assets".That passing remark turned out to be a big deal.
Apache's focus on late-stage assets gives it strong cash flow to help pay down debt quickly — some $7 billion this year and $8 billion next, Tudor Pickering Holt & Company estimates.
"It is nice to see JNJ use their cash to acquire late-stage assets that may be able to support growth in its pharmaceutical business and continue the company's move into the oncology arena," wrote Catherine Arnold, a pharmaceuticals analyst at Credit Suisse who has a neutral rating on J&J shares.
David Risinger, equity analyst at Morgan Stanley, says Pfizer is "paying up for the right fit," as the Medivation acquisition "complements Pfizer's oncology platform". The deal, he adds, is a good strategic fit for Xtandi within Pfizer's growing oncology portfolio, and two late-stage assets add optionality to Pfizer's pipeline.
"We continue to believe Dipexium's de-risked potential as it shepherds its late-stage asset Locilex through the clinical and regulatory processes," says Elliot Wilbur, equity analyst at investment firm Raymond James.
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