M&A activity was worth $78 bn in 2013 and ‘remains strategy in 2014’

A review of the merger and acquisition transactions between life sciences companies in 2013 has estimated a total figure of 78 billion US dollars for the activity.

The analysis from legal firm Squire Sanders, reported by PMLiVE, showed biotech played a larger part in the industry’s growth strategy through M&A.

A separate analysis, from advisers at Ernst & Young, suggested the activity was less than needed, however, for the industry’s “revenue ‘growth gap’ that is expected to reach US$100 billion by 2015“.

“In the pharmaceuticals section, as firms attempt to replenish their pipelines, they have looked to acquire smaller businesses in more niche areas, such as rare diseases, that are more certain to ensure profits, albeit smaller ones.”

Maureen Bennett, co-chair, life sciences and healthcare industry group, Squire Sanders, as reported by PMLiVE.

“As they face significant growth challenges ahead, pharma companies will need to become more acquisitive, but the growing strengths of big biotech and emerging pharma are leading to both increased competition for deals and more expensive targets.”

Glen Giovannetti, leader, global life sciences, EY.

 

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Related news:

2013 – biotech boomed (PMLiVE).

Big pharma’s need to tap M&A for growth will persist in 2014, while dealmaking landscape becomes more competitive (EY/prnewswire).

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