Singapore Markets close in 5 hrs 56 mins

WALL STREET PAYDAY: 4 banks made a killing from Monday's $20 billion in biotech deals

Alex Morrell
party celebration confetti

Scott Olson/Getty Images


  • Biotech mergers and acquisitions are off to a hot start in 2018.
  • On Monday, French drugmaker Sanofi spent $11.6 billion to buy US hemophilia firm Bioverativ, and Celgene spent $9 billion on cancer specialist Juno Therapeutics.
  • Investment banks stand to make as much as $185 million in fees for advising on the deals.


Two major biotech acquisitions dropped on Monday: French drugmaker Sanofi spent $11.6 billion to buy US hemophilia firm Bioverativ, and Celgene spent $9 billion on cancer specialist Juno Therapeutics.

The more than $20 billion in pharma mergers and acquisitions means a windfall of as much as $185 million in fees for four investment banks, with JPMorgan raking in the most from the deals. 

JPMorgan will split $45 million to $55 million in fees with Guggenheim Partners for advising Bioverativ, while Lazard will take in $30 million to $40 million for advising Sanofi, according to Jeffrey Nassof, the director of the consulting firm Freeman & Co.

JPMorgan also advised on the Celgene-Juno tieup, earning $25 million to $35 million in fees for advising Celgene. Morgan Stanley stands to make $45 million to $55 million for advising Juno. 

M&A activity is off to a blistering start for the sector in 2018 — Celgene earlier this month also spent as much as $7 billion to buy Impact Biomedicines — and Monday's deals could be a "sign that large-cap Pharma’s getting more aggressive again with dealmaking," according to Nassof. 

There were only nine US pharma acquisitions of $5 billion or more announced in 2017, compared with 14 in 2016 and 23 in 2015, Nassof said. 

NOW WATCH: Netflix is headed for a huge profit milestone in 2018

See Also: