Biotech deal-making off to a strong start in 2012, says Burrill

Swiss drug major Roche's hostile $5.7 billion bid for the tools and sequencing systems company Illumina reflected strong deal-making activity in the life sciences in January. In total, not including Roche's bid, more than $10 billion in global partnering and M&A deals were announced during the first month of the year, notes the latest report from Burrill & Co, a diversified USA-based global financial services firm focused on the life sciences industry.

The wrangling between Roche and Illumina is likely to go on for months. The deal reflects Roche's efforts to build itself into a personalized medicine powerhouse and its belief that sequencing technology will eventually migrate from the lab to the doctor's office.

Not counting the Roche-Illumina deal, life sciences companies announced $6.2 billion in agreed upon acquisitions in January. This included Bristol-Myers Squibb's $2.5 billion agreement to acquire hepatitis C drug developer Inhibitex; Amgen's $1.2 billion agreement to acquire Micromet, which is developing a new class of drugs that enlist the body's T-cells to battle cancer; and Celgene's agreement to acquire privately held Avila Therapeutics for $350 million plus milestones which if met could push the total value of the deal up to $925 million.