Back when the year began, the prospect of U.S. tax reform had pharma companies salivating for some M&A action. But with that reform still absent, drugmakers have put on the brakes instead.
Dealmaking in 2017 has so far seen a slowdown, tallying $207.6 billion across 1,040 deals in the pharma, medical and biotech sector, a new Mergermarket report (PDF) said. That’s a 9.9% dip in value and 106 fewer transactions compared with the same period last year.
The industry’s sluggish deal pace was particularly apparent last quarter; just $42.9 billion worth of deals came to fruition, the lowest quarterly value since the same period in 2014 and its $46.3 billion. And just one deal—Gilead’s $10.2 billion Kite buyout agreement, which will hand the Big Biotech newly approved CAR-T medication Yescarta—generated nearly 35% of the quarter’s dealmaking haul.
Make no mistake: It’s pharma that’s dragging down the overall category. Biotech, in fact, is red hot, partly in thanks to the Gilead deal. Overall, the biotech field has already surpassed all annual totals that Mergermarket had on file, and its records date back to 2001.
That’s not to say pharma M&A can’t turn around—especially if tax reform shows up. Deal enthusiast Pfizer, for one, has listed uncertainty around tax reform as a reason to sit tight for now. Some analysts have suggested it may have its eye on Bristol-Myers Squibb, though, and that company would certainly cost a pretty penny.
Pfizer’s also potentially looking to sell off its consumer health unit, and analysts have suggested that Endo turn to the M&A arena to ease its struggles. Alvogen’s private equity owners have also held talks with Shanghai Pharmaceuticals that could lead to a $4 billion sale.
By Carly Helfand
Source: Fierce Pharma
Novo Holdings has concluded the acquisition of all outstanding shares of commercial-stage biopharmaceutical company Paratek Pharmaceuticals for nearly $462m (€433.67m) to bolster its antimicrobial resistance (AMR) expertise. Paratek develops and commercialises new treatments for life-threatening ailments. Its speciality pharmaceutical platform aids in developing new therapeutics.
Glenmark Pharmaceuticals has signed a definitive agreement for the divestiture of a 75% stake in its division, Glenmark Life Sciences (GLS), to Indian company Nirma in a deal valued at Rs56.51bn ($679.85m). Glenmark Life Sciences focuses on producing active pharmaceutical ingredients (API).
Pierre-Alain Ruffieux, CEO of Lonza, will leave the Basel-based company at the end of September. According to the Swiss Contract Development and Manufacturing Organization (CDMO), the separation is by mutual agreement.