2020 has just begun, which means it’s time to look back at the healthcare M&A landscape of 2019. Just three days into the new year, nearly 1,780 deals are already on the books for 2019. More deals will turn up as we search our many sources, but the number likely won’t top the record of 1,900-plus set in 2018.
Thanks to the multi-billion-dollar deals announced in the Biotech and Pharmaceutical sectors, 2019 will set a new spending record. Preliminary data show $399.1 billion was spent on healthcare acquisitions last year, about 20% higher than in 2018. We expect that number to rise as we go through the year and the 10Ks and quarterly reports come out. It’s possible the market could hit $400 billion for the first time ever.
M&A action doesn’t look like it will slow down in 2020, at least until the November elections. Some sources tell us the markets have already priced in worst-case scenarios, like Medicare-for-All becoming a real possibility, or a recession taking hold. Maybe. But there’s always something else no one can anticipate or bank on. Happy New Year, all! We’ll keep you posted on what’s happening.