IPOs by Facebook and Manchester United notwithstanding, there are other ways to tap deep pockets, such as getting acquired.
Octagon Research Solutions Inc., a Wayne software company that helps pharmaceutical companies with submitting clinical data to regulators, agreed to be acquired by Accenture P.L.C. earlier this month. Terms of the transaction, which is expected to close by the end of September, were not disclosed.
At $25.5 billion in net revenues for 2011, Accenture is by far the bigger company. But Octagon has grown quickly in recent years and currently has a global workforce of 380 people, most of which work in the Philadelphia area. It also has offices in Mountain View, Calif.; London; and Bangalore, India.
It seems like the financing window is cracking open a bit for life-sciences companies.
Two Philadelphia medical-device companies completed financings totaling more than $45 million this week.
Rosetta Genomics Ltd. raised gross proceeds of $27.5 million from a secondary public offering of 5.5 million shares. The company, with corporate headquarters in Israel and laboratories in West Philadelphia, said it plans to use the proceeds to fund its operations and for other purposes that could include working capital, acquisitions, research and development, and repayment of future debt.
Founded in 206, Eusa employs about 180 employees at its offices in Langhorne; Oxford, United Kingdom; and Lyon, France. Bryan Morton, who is founder, president and CEO of Eusa, will remain with the company, according to a statement issued by the companies.
Under the terms of the transaction, an additional $50 million cash payment would be made once Eusa's lead product, Erwinaze, attains an undisclosed U.S. net sales target in 2013. Approved by the Food and Drug Administration last November, Erwinaze is used to treat patients with acute lymphoblastic leukemia, a rare disease that strikes about 3,600 people under the age of 20 in the United States each year.
Somebody opened the deal window.
Philadelphia-area companies are buyers, sellers and prey in separate transactions announced Tuesday.
First up, Penn Virginia Resource Partners L.P. said it will buy pipelines that serve Marcellus shale natural gas producers in northeastern Pennsylvania from Chief E&D Holdings L.P. for $1 billion. Radnor-based Penn Virginia plans to finance the deal through a combination of equity and debt.
What a turnabout for Discovery Laboratories, the Warrington drug discovery company.
First, the company received a long-delayed OK from the Food and Drug Administration March 6 to begin selling its first drug. Surfaxin would be used to prevent a respiratory illness that affects premature infants.
Shares jumped as high as 44 percent to $5.39 on March 7 on word of the FDA approval. They settled that day at $4.08, up 33 cents on heavier than normal volume.
Shire will pay $100 million in cash when it seals the deal and could make payments of up to $225 million more should San Francisco-based FerroKin meet certain milestones for its product to treat patients who experience iron overload from chronic blood transfusions.
News of the acquisition comes one day after Shire announced that it had withdrawn its application seeking approval for Replagel, a treatment for Fabry disease, by the Food and Drug Administration. The company said it believed that U.S. regulators would require additional clinical trials for the biologic, which has been approved in the European Union for more than a decade.
PNC Financial Services Group, one of 15 big banks to pass the Federal Reserve's latest stress tests, will be raising its dividend, but has not disclosed by how much.
The Pittsburgh bank holding company currently pays 35 cents per share for its quarterly dividend. PNC's board is expected to discuss hiking that at its April meeting.
Who failed the stress tests? Citigroup, MetLife, Ally Financial and SunTrust.