Merger ups & downs

Restructuring in Germany is slowly progressing, with companies retooling, spinning out, selling assets and merging. But while one new merger was announced last week, another fell apart - illustrating how difficult it often is to put two companies together.

The merger between neurological play Biofrontera Pharmaceuticals Holding AG and chemistry company Kiadis B.V., which was announced in February, was called off last week after months of negotiations. The transaction, which would have formed a newco called Aliga Pharmaceuticals AG, had been seen by many industry watchers as the paradigmatic case for a European merger. It was supposed to add chemistry and screening capacity from Kiadis that would help Biofrontera develop compounds faster (see BioCentury, Feb. 17)...