Neurology M&A Snapshot Through Q2 2023

Neurology MA Snapshot Through Q2 2023

We are looking at mergers and acquisitions in the neurology space through June 2023. As with the broader biopharma sector, neurology deal flow has been down since 2020. The year started with a decent number of billion-plus acquisitions in other biopharma therapeutic areas, however, neurology has yet to see large deals. EIP-Pharma and Diffusion’s reverse merger set the stage for tackling dementia with Lewy bodies; SNBL’s acquisition of Satsuma Pharmaceuticals emphasized innovation in migraine treatment. In contrast, the XRHealth and Amelia Virtual Care merger promised immersive solutions for Parkinson’s and Multiple Sclerosis. Adding to that we saw gene therapy focused ANEW MEDICAL’s SPAC deal with Redwoods Acquisition Corp to take it public.

MA by TA

There was only $99 million in announced neurology focused M&A deals through the first half of 2023 across 8 deals. This is a significant decrease in the number of deals and the total value compared to just the fourth quarter of 2022, which showed 9 deals with a total value of $627 million.

MA by TA Neurologic

Noticing Success: The Leading M&A Therapy Areas 2022 – H1 2023

Noticing Success The Leading MA Therapy Areas 2022 H1 2023
Noticing Success The Leading MA Therapy Areas 2022 H1 2023

Cancer stands out as the primary focus area for M&A as well as other transactions, having an impressive 90 M&A deals for a total M&A value of $70 billion. The ophthalmic disease space follows closely with 15 deals contributing $35 billion to the overall M&A total since 2022. The cardiovascular and neurology sectors also show significant activity across both years, with 23 and 43 deals, respectively, translating to corresponding M&A values of $29 billion and $20 billion. Lastly, the autoimmune sector concludes the list with 8 deals totalling $14 billion.

Neurology M&A Breakdown: Deals And Patterns In H1 2023

  • In March 2023, EIP Pharma announced a reverse merger with Diffusion to facilitate its public listing. The newly formed entity will concentrate on advancing neflamapimod for managing dementia with Lewy bodies (DLB). After the merger, the company will adopt the name CervoMed and be publicly traded on Nasdaq under the symbol CRVO. EIP Pharma’s shareholders will hold about 77.25% ownership, while Diffusion’s stockholders will possess around 22.75% ownership in the combined company. The specific financial details have not been made public.
  • In April 2023, SNBL announced its acquisition of Satsuma Pharmaceuticals. The primary focus of Satsuma’s portfolio is STS-101, a Phase III compound aimed at treating migraines. As part of the acquisition, Satsuma stakeholders will receive $0.91 per share. Additionally, they can receive up to $5.77 per share in cash for each common stock as a contingent value right (CVR). This additional payment is contingent upon specific licenses and sales of the STS-101 product.
  • In April 2023, XRHealth announced its acquisition of Amelia Virtual Care. The primary goal of XRHealth will be to create an XR therapeutic platform that combines virtual reality and augmented reality (AR) technologies. This platform will treat conditions such as Parkinson’s Disease and Multiple Sclerosis. The financial details of this merger have not been made public.
  • In May 2023, ANEW MEDICAL announced a reverse merger with Redwoods Acquisition Corp. through a SPAC deal. The merged company, trading on Nasdaq, will focus on developing gene therapies for ALS and Alzheimer’s. The combined entity’s estimated value is up to $94M assuming no redemptions. It will receive $54M in cash from Redwoods’ trust account and potentially $5M in earn-out shares based on stock performance.

All of this by stage, disease indication, modality, target…

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