OPK @ JPM 1/10/24

The deal machine in Healthcare is getting some fuel with the JPM conference:

JNJ purchase of AMBRX: 2 oncology drugs, one in P2, one in P1; two ‘partnered programs’, one in P1, one is preclinical; two ‘collaboration programs’, one at end of P2, one preclinical. No revenue, $2 bill price tag, 105% premium. 63mm shs o/s; 39mm float; 43% of the stock is owned by two hc focused funds/hedge funds.

MRK buy of HARP: $680mm, another 100+% premium, now trading at $22.25….WAS $3.11 on 10/12/23!!! 16.9mm shs, 14.7mm in float, ~47% of stock owned by hc funds. Two drugs in P1, 5 are preclinical……has some revenue ($30-40mm) but that may be partnership/milestone related

Novartis buying monoclonal antibody startup Calypso Biotech for $250mm plus incentives. Two drugs in P1, one is preclinical.

Also, Lilly and Novartis are partnering with a unit of Google (Isomorphic Labs) for small molecule therapeutics discovery deals. They’re paying Isomorphic, $45mm and $37mm upfront, respectively, with huge back end/milestone sweeteners of over $1 bill each

A lot of money flying around.