When large corporations acquire small biotech startups, it means biomedical industry is growing. United States has examples of large pharmaceutical companies investing in small projects. Celgene, which acquired Impact for 7 billion dollars, is such a company.
John Hood, Executive Director at Impact, said that they were not going to sell the company at the end of last year. In addition, the team didn’t have a general consensus on weather it should be sold or not. But everything was clear after launching production of the drug for patients with myelofibrosis led by Celgene. The company will make the process faster and less risky.
John Hood has become kind of a star in biotechnology, as drug developers usually do not become managers of the business. But he was able to break the pattern: being a Head of Impact, he raised 100 million dollars of investment and managed to sell his company.
Many believe that Celgene overpaid when buying Impact. It is likely Celgene will have to make another expensive deal with other company in the future. The reason is the expiration of the patent for Revlimid, a key product of Celgene. Investors recommended buying Bluebird Bio, a company focused on gene therapy.