This year has so far been a huge one for healthcare deals–but just wait, a new report says. 2016 will be “the year of merger mania.”
According to the annual report from PwC’s Health Research Institute, in 2016, “high-profile” mergers and acquisitions are likely to continue.
But does that mean industry watchers should expect to see more transactions in the Pfizer-Allergan vein, which saw two hulking pharmas agree to a merger pact? Not necessarily.
“Drug companies are looking beyond traditional M&A by acquiring ‘beyond-the-pill’ products and services to bolster their portfolios and pipelines,” PwC notes. Take Teva, for example, which recently nabbed Massachusetts’ Gecko Health Innovations. The so-called smart inhaler company boasts a hardware and software system that connects patients, caregivers and doctors to help improve patient adherence, and that’s technology the Israeli pharma wants to help keep people taking their respiratory meds.
Teva’s not the only one looking outside the box to grab a competitive edge. Companies are experimenting with all sorts of digital strategies, including mobile apps, devices and text messaging, to boost adherence.
And that’s a good thing for companies trying to clear antitrust hurdles, PwC points out–especially for a company such as Teva, which competes in the rapidly consolidating generics business: “Regulatory scrutiny will only heighten as consolidation continues, and those who go to market in unconventional ways may be better positioned to address it.”
Meanwhile, companies are still helping the sector post a banner M&A year in 2015; global activity in the pharma, medical and biotech spheres over the first three quarters of this year hit its largest-to-date value since at least 2001, Mergermarket said in October. Over that period, the industries turned out 954 transactions worth $367.6 billion.
By Carly Helfand
Source: Fierce Pharma
Airnov provides critical healthcare industries with high-quality, controlled atmosphere packaging, to protect their products from moisture and oxygen. The business has manufacturing facilities in the USA, France, China and India and employs around 700 people.
Takeda of Japan has partnered with Hong Kong-based Hutchmed, gaining the commercial rights to colorectal cancer drug fruquintinib outside of China for $400 million up front, plus $730 million in potential milestone payments. Takeda also will help develop fruquintinib, which can be applied to subtypes of refractory metastatic colorectal cancer, regardless of biomarker status, the companies said.
On April 3, Scangos, who’s been chief executive officer at Vir since the start of 2017, will hand over the reins to Marianne De Backer, Ph.D. De Backer comes over from Bayer, where she currently heads up pharmaceutical strategy, business development and licensing. Alongside her CEO appointment, De Backer is set to join Vir’s board of directors, the company said Wednesday.
