Because of the consolidation among generics companies over the last several years, the companies are running out of acquisition targets and as a result, specialty pharma firms are now in the M&A spotlight as acquisitive drugmakers search for new ways to fuel growth, reports The Deal’s Laura Cooper. ‘There are very few publicly traded generic companies left,’ said Jefferies LLC analyst David Steinberg last month. ‘We think some of the most attractive areas are in the niches. Areas like controlled release, topical or injectable generics.’ Potential targets include Impax Laboratories, Akorn Pharmaceuticals and Sagent Pharmaceuticals Inc., according to Steinberg. Buyers for these companies could include Novartis AG’s generics arm Sandoz and Perrigo Co. plc. Perrigo is fending off a $31.2 billion hostile bid from Mylan NV. On Aug. 14, Institutional Shareholder Services Inc. recommended that Mylan shareholders vote against the unsolicited offer, which values Perrigo at about $34 billion. Sagent has been on The Deal’s list of potential activist targets since April.
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