Looked this up after reading a reddit post from UWS about creeper acquisitions
b]examples of big pharma creeper stock acquisitions
ChatGPT said:[/b]
Big Pharma has a history of "creeper" stock acquisitions, where companies quietly buy up stocks in smaller biotech firms, often with the goal of acquiring them later or gaining access to innovative research and products. These acquisitions can be controversial because they sometimes seem to be done under the radar, with little public notice until a deal is made. Here are a few examples:
1. Johnson & Johnson's Acquisition of Actelion (2017)
Background: Actelion, a Swiss biotech company specializing in pulmonary arterial hypertension treatments, was one of Europe's largest independent biotech firms.
The Deal: J&J acquired Actelion for $30 billion, but it wasn’t an overnight thing. J&J had started quietly acquiring Actelion shares in early 2016, eventually launching a formal offer. The acquisition included Actelion's promising pipeline of drugs, as well as its expertise in pulmonary medicine.
Creeper Nature: J&J began buying shares in Actelion without making their intentions clear to the market, creating a sense of stealth around the move.
2. Merck's Acquisition of Cubist Pharmaceuticals (2014)
Background: Cubist was a leader in the development of antibiotics, particularly for resistant bacterial infections.
The Deal: Merck acquired Cubist for approximately $9.5 billion.
Creeper Nature: While Merck didn’t start buying Cubist shares slowly, the nature of their acquisition was somewhat "creeper"-like because of how they engaged with the biotech's investors and directors before the deal went public. Cubist was considered a prime target for larger firms seeking to bolster their infectious disease portfolio.
3. Pfizer's Acquisition of Wyeth (2009)
Background: Wyeth, a giant pharmaceutical company with strong positions in vaccines and biologics, was seen as an attractive target.
The Deal: Pfizer bought Wyeth for around $68 billion. The deal significantly boosted Pfizer’s vaccine division (especially after the success of Wyeth’s Prevnar vaccine).
Creeper Nature: Although Pfizer made the acquisition public when the deal was officially announced, they had quietly been engaging with Wyeth and monitoring its stock for some time. The deal was also seen as a response to Pfizer's own pipeline challenges at the time, and the nature of the talks suggested a strategy of slowly gaining control over Wyeth’s valuable assets.
4. Gilead’s Acquisition of Kite Pharma (2017)
Background: Kite Pharma was one of the leading companies in the field of CAR-T cell therapy, a cutting-edge cancer treatment.
The Deal: Gilead Sciences acquired Kite Pharma for $11.9 billion, which seemed steep at the time, but Kite had a promising pipeline and was considered a leader in cell-based immunotherapies.
Creeper Nature: Gilead began acquiring shares of Kite Pharma slowly over time, and their intentions became clearer only as the deal neared finalization. The acquisition was seen as part of a broader strategy to move into the oncology market.
5. AstraZeneca’s Acquisition of Alexion Pharmaceuticals (2020)
Background: Alexion was a leader in rare disease treatments, particularly in the field of complement inhibition.
The Deal: AstraZeneca agreed to acquire Alexion for $39 billion.
Creeper Nature: Before the public announcement, AstraZeneca had been quietly positioning itself to gain control over Alexion, with the deal seen as a way to significantly bolster AstraZeneca's rare disease and immunology portfolio.
6. Bristol-Myers Squibb's Acquisition of Celgene (2019)
Background: Celgene was a leader in oncology and immunology with blockbuster drugs like Revlimid.
The Deal: Bristol-Myers Squibb acquired Celgene for $74 billion, one of the largest pharmaceutical deals in history.
Creeper Nature: Although the deal was publicly announced, BMS had been in talks and building up interest in Celgene for months beforehand. The "creeper" aspect comes from the slow, deliberate way in which BMS approached the acquisition and the secrecy surrounding the negotiation process.
7. AbbVie’s Acquisition of Allergan (2020)
Background: Allergan was the maker of Botox, along with other key treatments in the aesthetics and ophthalmology markets.
The Deal: AbbVie agreed to acquire Allergan for $63 billion.
Creeper Nature: AbbVie had been gradually building up a stake in Allergan and was interested in diversifying its portfolio beyond Humira, its blockbuster arthritis drug. The acquisition allowed AbbVie to broaden its reach in both consumer health and aesthetic treatments.
These types of "creeper" acquisitions are often controversial because they can involve large corporations acquiring companies with promising research or products without giving much visibility to the public or other potential buyers. However, from a strategic standpoint, they often make sense, allowing Big Pharma to access high-growth assets before they become widely known or before competitors get involved.
b]examples of big pharma creeper stock acquisitions
ChatGPT said:[/b]
Big Pharma has a history of "creeper" stock acquisitions, where companies quietly buy up stocks in smaller biotech firms, often with the goal of acquiring them later or gaining access to innovative research and products. These acquisitions can be controversial because they sometimes seem to be done under the radar, with little public notice until a deal is made. Here are a few examples:
1. Johnson & Johnson's Acquisition of Actelion (2017)
Background: Actelion, a Swiss biotech company specializing in pulmonary arterial hypertension treatments, was one of Europe's largest independent biotech firms.
The Deal: J&J acquired Actelion for $30 billion, but it wasn’t an overnight thing. J&J had started quietly acquiring Actelion shares in early 2016, eventually launching a formal offer. The acquisition included Actelion's promising pipeline of drugs, as well as its expertise in pulmonary medicine.
Creeper Nature: J&J began buying shares in Actelion without making their intentions clear to the market, creating a sense of stealth around the move.
2. Merck's Acquisition of Cubist Pharmaceuticals (2014)
Background: Cubist was a leader in the development of antibiotics, particularly for resistant bacterial infections.
The Deal: Merck acquired Cubist for approximately $9.5 billion.
Creeper Nature: While Merck didn’t start buying Cubist shares slowly, the nature of their acquisition was somewhat "creeper"-like because of how they engaged with the biotech's investors and directors before the deal went public. Cubist was considered a prime target for larger firms seeking to bolster their infectious disease portfolio.
3. Pfizer's Acquisition of Wyeth (2009)
Background: Wyeth, a giant pharmaceutical company with strong positions in vaccines and biologics, was seen as an attractive target.
The Deal: Pfizer bought Wyeth for around $68 billion. The deal significantly boosted Pfizer’s vaccine division (especially after the success of Wyeth’s Prevnar vaccine).
Creeper Nature: Although Pfizer made the acquisition public when the deal was officially announced, they had quietly been engaging with Wyeth and monitoring its stock for some time. The deal was also seen as a response to Pfizer's own pipeline challenges at the time, and the nature of the talks suggested a strategy of slowly gaining control over Wyeth’s valuable assets.
4. Gilead’s Acquisition of Kite Pharma (2017)
Background: Kite Pharma was one of the leading companies in the field of CAR-T cell therapy, a cutting-edge cancer treatment.
The Deal: Gilead Sciences acquired Kite Pharma for $11.9 billion, which seemed steep at the time, but Kite had a promising pipeline and was considered a leader in cell-based immunotherapies.
Creeper Nature: Gilead began acquiring shares of Kite Pharma slowly over time, and their intentions became clearer only as the deal neared finalization. The acquisition was seen as part of a broader strategy to move into the oncology market.
5. AstraZeneca’s Acquisition of Alexion Pharmaceuticals (2020)
Background: Alexion was a leader in rare disease treatments, particularly in the field of complement inhibition.
The Deal: AstraZeneca agreed to acquire Alexion for $39 billion.
Creeper Nature: Before the public announcement, AstraZeneca had been quietly positioning itself to gain control over Alexion, with the deal seen as a way to significantly bolster AstraZeneca's rare disease and immunology portfolio.
6. Bristol-Myers Squibb's Acquisition of Celgene (2019)
Background: Celgene was a leader in oncology and immunology with blockbuster drugs like Revlimid.
The Deal: Bristol-Myers Squibb acquired Celgene for $74 billion, one of the largest pharmaceutical deals in history.
Creeper Nature: Although the deal was publicly announced, BMS had been in talks and building up interest in Celgene for months beforehand. The "creeper" aspect comes from the slow, deliberate way in which BMS approached the acquisition and the secrecy surrounding the negotiation process.
7. AbbVie’s Acquisition of Allergan (2020)
Background: Allergan was the maker of Botox, along with other key treatments in the aesthetics and ophthalmology markets.
The Deal: AbbVie agreed to acquire Allergan for $63 billion.
Creeper Nature: AbbVie had been gradually building up a stake in Allergan and was interested in diversifying its portfolio beyond Humira, its blockbuster arthritis drug. The acquisition allowed AbbVie to broaden its reach in both consumer health and aesthetic treatments.
These types of "creeper" acquisitions are often controversial because they can involve large corporations acquiring companies with promising research or products without giving much visibility to the public or other potential buyers. However, from a strategic standpoint, they often make sense, allowing Big Pharma to access high-growth assets before they become widely known or before competitors get involved.
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