Deals of the Week: IPO Window Raises Stakes For M&A

Rather than continue down the path to a public offering, Aragon sells to J&J for a hefty price. Also, MedImmune strikes a diabetes and obesity deal with NGM, Teva buys respiratory drug maker MicroDose, and Sanofi allies with the Curie Institute to study ovarian cancer.

The wide-open IPO window has given private companies more liquidity options, so maybe it’s no wonder that pharmas are willing to pay more than usual for closely held start-ups. Judging by some recent acquisitions, pharmas are digging deep to buy assets they believe will become blockbuster cancer drugs.

The mid-June buyout of Aragon Pharmaceuticals Inc. by Johnson & Johnson for $650 million up front is among...

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