Biotechnology Deals in Q1 2016
Biotechnology deal activity picked up in the first quarter of 2016, rising 43% versus the previous quarter, to 30 deals. The total is 24% of the 127 deals announced in the previous 12 months. Biotechnology targets range from large, publicly traded companies to small startups, or established lines of products to licenses or rights to technologies and drugs in various phases of development. Research collaborations are included, when an acquirer pays an upfront fee for the rights to a promising compound, and picks up the R&D, regulatory and commercialization costs. In the first quarter, 19 of the 30 transactions involved the purchase of an entire company, while seven involved the rights... Read More »April Deal Volume Was Decent
We’re still in preliminary territory, so don’t bank on this yet. Health care M&A hit 120 deals for the month of April 2016, down 12% versus the previous month’s 136 deals, but 7% better than the same month a year ago. Long-term care deals led the transaction activity with 21 deals (18% of the total), with Biotechnology (17 deals, 14%) and eHealth (16 deals, 13%) close behind. Thanks to the $30.7 billion Abbott (NYSE: ABT) offer for St. Jude Medical (NYSE: SJM), spending for the month was far higher than in recent months. April’s deal value now stands at $42.2 billion, up 240% compared with March’s $12.4 billion and 732% compared with April 2015’s... Read More »AbbVie Buys a Pipeline
After only four deals announced in 2014 and 2015, AbbVie (NYSE: ABBV) gained momentum in the M&A space this year in an effort to expand and diversify its portfolio. The timing isn’t a coincidence, since it faces the looming expiration of Humira’s patent in December. The drug that accounted for 63% of AbbVie’s 2014 sales could lose its dominant position in the autoimmune disease market as competitive generics take the field. In the first four months of 2016, AbbVie has dished out $6.4 billion on three deals (two collaborations and one acquisition). On March 7th, the company announced a collaboration with Boehringer Ingelheim that added anti-IL-23 to its immunology pipeline. The... Read More »Biotechnology Deals, 2006 to 2015
The biotechnology sector has had some ups and downs in recent years, to put it mildly. After a strong start in the first quarter of 2015, when 62 transactions were recorded, deal volume slowed considerably, to only 20 deals in the fourth quarter of 2015. One of the strongest headwinds has been the criticism of the pharmaceutical industry for the high prices charged for certain drugs. Presidential candidates and federal legislators have called for hearings on this issue, which caused some investors to pull back in this and the pharmaceutical sector. Read More »Leap Day Boosts February Deal Volume
It’s Leap Year, which means February was a day longer in 2016. This year, that extra day marked the announcement of seven healthcare transactions, which raised the month’s total to a healthy 113 deals. The services sectors were more active than usual, and accounted for 65% of the total. Usually, the services side makes up about 55% to 60%. Dollar volume was healthy, too, at $27.7 billion. But given the records set in 2015, February’s dollar total ended up 35% below the same month a year ago. The deals may be getting smaller, but they’re still being made. Read More »Schedule a demo
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