Big Pharma companies are trying to offload low-growth, mature drug portfolios to firms such as Blackstone Group LP and TPG Capital LP which need to figure out how to carve them out, in one of private equity's greatest dealmaking challenges.While these portfolios face declining sales, some takeover firms believe they can make a profit if they purchase them at prices that are sufficiently low. In order to achieve this, they must create viable new companies - a highly complex and uncertain feat that now preoccupies some of private equity's brightest minds.GlaxoSmithKline Plc, Sanofi SA and Merck & Co Inc are just some of the companies looking to shed older drugs, many of which have lost patent protection and face shrinking sales.These drug portfolios, worth tens of billions of dollars combined, offer an opportunity for private equity firms to put a lot of money to work at a time when stock markets continue a record-setting rally and aggressive corporate buyers are pushing deal valuations to multiyear highs.
The Blackstone Group L.P. (Blackstone) is a manager of private capital and provider of financial advisory services. Shares of BX traded higher by 0.16% or $0.05/share to $32.31. In the past year, the shares have traded as low as $21.30 and as high as $35.39. On average, 4992280 shares of BX exchange hands on a given day and today's volume is recorded at 2944411.
Merck & Co., Inc. (Merck), is a global health care company that delivers health solutions through its prescription medicines, vaccines, biologic therapies, animal health, and consumer care products, which it markets directly and through its joint ventures. Shares of MRK fell by 0.15% or $-0.09/share to $58.49. In the past year, the shares have traded as low as $44.62 and as high as $59.84. On average, 9426850 shares of MRK exchange hands on a given day and today's volume is recorded at 4965686.
Sanofi, formerly Sanofi-Aventis is a global and diversified healthcare company. Shares of SNY traded higher by 0.31% or $0.16/share to $51.83. In the past year, the shares have traded as low as $46.95 and as high as $54.64. On average, 982936 shares of SNY exchange hands on a given day and today's volume is recorded at 698225.
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