Takeda Takes on Shire for $81.5 Billion

Big Pharma deals are back, more than ever. After six weeks of offers, refusals, talks and more, Japanese drug giant Takeda Pharmaceutical Company Limited (OTCQB: TKPYY) reached an agreement to acquire Shire plc (NASDAQ: SHPG) for $81.5 billion, including assumed debt of $19.54 billion. It’s the largest healthcare deal announced ever, unless you count Pfizer’s (NYSE: PFE) hostile stalking of AstraZeneca (NYSE: AZN) through much of 2014, with bids reported to be around $118 billion. And we don’t. Looking back over past pharmaceutical deals (that closed), this takes the record from Pfizer, which announced its acquisition of Wyeth, Inc. for approximately $78.5 billion, including $10.5 billion... Read More »

M and A Slows in Pharma Sector in 2016

The pharmaceutical industry has been the behemoth of healthcare M&A, usually accounting for the largest dollar amounts spent in any given year and often one of the most active in terms of number of transactions. But since its record year in 2014, this sector has been on a slow decline. Big Pharma deal volume dropped 9% since 2015, from 171 that year to 156 deals in 2016. Dollars spent slid even further, down 39%, from $138.4 billion in 2015 to just $84.45 billion in 2016. The Pharma sector is notorious for its multi-billion dollar mega deals. The largest pharma deal in 2016 is a prime example, as it was also the largest deal of the year. That was Shire plc’s (NASDAQ:SHPG) $32 billion... Read More »

Pharma M&A Is all about Options

The days of mega-mergers in the pharmaceutical sector aren’t necessarily over, but those deals will be fewer and farther between, going forward. Nearly 60 deals have been announced in 2016 through the middle of May, and just 17 have an entire company as the target. The largest, so far, is Shire’s (NASDAQ: SHPG) $32 billion takeover of Baxalta (NYSE: BXLT), announced in January. The rest are either collaborations on product candidates, rights or license deals for marketed products or clinical-stage candidates, even the rights to royalties. That’s Royalty Pharma’s $1.1 billion deal for the royalty interest in Xtandi, which is being sold by a co-owner, UCLA, where... Read More »

Biggest Health Care Deals in January 2016

The pace of health care mergers and acquisitions slowed considerably in January 2016. In part, that’s due to the rush to get business off the books by the end of the calendar year, which is why fourth quarters are usually so busy. This year we’ve counted about 95 transactions announced in January, which is 32% lower than December 2015’s total, and 29% below January 2014. Thanks to Shire plc’s (NASDAQ: SHPG) $32 billion deal for Baxalta Inc. (NYSE: BXLT), spending in the month handily beat those previous months. But who would’ve thought a behavioral health care deal would rank as the month’s second largest deal? Check out the chart below. We’ll have... Read More »
This January Is Pharma M&A Month

This January Is Pharma M&A Month

Halfway through the month of January 2016, 12 pharmaceutical deals have been announced, with a total of  $32.8 billion. You might think that’s a result of the annual JP Morgan Healthcare Summit that’s held every year in the second week of January.  That’s only half right. Last year, only nine pharma deals were announced the entire month of January, with six of them in the first two weeks. In 2014, there were 14 pharma deals in January, 11 of which were announced in the first two weeks. The biggest deal in the sector this month, Shire plc’s (NASDAQ: SHPG) $32 billion acquisition of Baxalta Inc. (NYSE: BXLT), was in the works long before the Summit, however. Shire... Read More »