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Baxalta: Growth through Acquisitions

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Baxalta’s acquisitions

Baxalta (BXLT) has grown over time, through several acquisitions:

  • 2013: Inspiration BioPharmaceuticals and Ipsen Pharma
  • 2014: Chatham Therapeutics and AesRx
  • 2015: sigma-tau and SuppreMol

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Baxalta’s 2013 and 2014 acquisitions

In March 2013, Baxalta acquired Inspiration BioPharmaceuticals. Through this acquisition, it gained the investigational drug Obizur and related assets. Other assets were acquired from Ipsen Pharma. Later, Obizur received FDA approval for treating hemophilia A. Further in fiscal 2015, the product was approved in Canada and Europe.

Chatham Therapeutics was acquired in April 2014. It gave Baxalta Chatham’s preclinical program of hemophilia A. Later, in June 2014, Baxalta gained AesRx and its sickle cell disease program.

Baxalta’s 2015 acquisitions

Soon after its separation from Baxter (BAX) in July 2015, Baxalta acquired sigma-tau. Through this acquisition, Baxalta entered the oncology space with Oncaspar. It gained access to the investigational biologic calaspargase pegol.

In March 2015, Baxalta acquired SuppreMol. This acquisition granted Baxalta early-stage pipeline molecules for the treatment of autoimmune and allergic diseases.

Other pharmaceutical and biotechnology companies that have grown inorganically include Sanofi (SNY) and Valeant (VRX). Sanofi acquired Genzyme and gained access to its rare disease portfolio, and Valeant acquired Salix Pharmaceuticals and expanded its gastrointestinal portfolio with Salix’s Xifaxan.

To get exposure to Baxalta and control excessive company-specific risks, investors could choose to invest in the VanEck Vectors Biotech ETF (BBH). The company accounts for 4.8% of the fund’s total holdings. In the next part of this series, we’ll look at Baxalta’s segments.

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