The Merger/License Dance of AstraZeneca, Forest and Novexel

As public health officials warn about new strains of resistant bacteria spreading in hospitals, drug firms have been slow to produce new ammunition. But the past few years have seen a spate of deals, both licenses and acquisitions, among firms maneuvering into the antibiotic space. The latest antibiotic deal-AstraZeneca PLC's two-step, $350 million acquisition of Novexel SA--happened just before the winter holidays and was easy to overlook amid the year-end flurry of industry action. It's worth revisiting for a few reasons.