If not a match made in heaven, Ipsen’s (OTC:IPSEF) (OTCPK:IPSEY) $575m up-front deal to acquire Merrimack Pharmaceuticals’ (NASDAQ:MACK) oncology business is a marriage of convenience on both sides. In return for a much-needed cash injection the struggling groom, Merrimack, gives its French bride an easier way into the US oncology market – complete with sales force, manufacturing facilities, and the slightly dull family silver in the form of pancreatic cancer drug Onivyde.
Gaining a US-approved oncology product, and more importantly, the infrastructure around it, also helps Ipsen rebalance a portfolio where its primary care operations have underperformed, creating a drag on the speciality pharma business.
