Biotechnology Gets the Usual January Boost

Biotechnology Gets the Usual January Boost

The Biotechnology sector roared to life in 2017, posting a record 209 transactions. That’s 20% higher than the 174 deals announced in 2016. The previous record for the sector was set in 2009, with 193 transactions announced in the space. Spending for those 209 deals in 2017 didn’t set new records, but did post an impressive $54.5 billion in disclosed prices. That’s 283% higher than the $18.6 billion recorded in all of 2016, but not close to the secctor’s annual spending record of $93.9 billion, set in 2008. Every January, the Biotechnology Showcase is held in San Francisco, concurrent with the J.P. Morgan Healthcare conference. And every January, this sector sees... Read More »
Pharmaceutical Deals Took a Dive in 2017

Pharmaceutical Deals Took a Dive in 2017

On the eve of the 36th annual J.P. Morgan Healthcare Conference, it’s only fitting to take a look at where pharmaceutical deals ended up at the end of 2017. Suffice to say, at a record low deal volume. Preliminary data show just 96 transactions for pharmaceutical targets were announced last year, the first time pharma deals have notched a two-digit deal volume since 2001 (87 deals then). That marks a 38% decline from 2016’s 156 transactions, and a 49% drop from the most recent high-mark of 188 deals announced in 2014. Spending was also anemic, with just $28.1 billion committed to finance those deals. That’s 67% below last year’s $84.8 billion, and 87% lower than the... Read More »
Top 10 Health Care Deals of 2017

Top 10 Health Care Deals of 2017

“Variety” best describes the top 10 healthcare deals announced in 2017. The target companies spanned sectors from Biotechnology and Medical Devices to Managed Care and Other Services. You know the healthcare game is changing when just a single pharmaceutical target made the list in 2017, compared with six of the top 10 deals in 2015. The 10 largest deals total $182.1 billion, and account for 59% of the year’s preliminary deal value total of approximately $310.7 billion. In 2016, the top-10 accounted for 51% of the year’s $256.7 billion in spending. In 2017, a Managed Care target was again the largest target of the year. Unlike in 2o15, when the Big Five managed care companies... Read More »

MCOs Make Deals to Combat High Drug Costs

The rising cost of prescription drugs was part of many candidates’ campaign platforms in the 2016 national elections. The topic has not gone away, and is certainly a factor in the dearth of Big Pharma deals in 2017.  Through June 15, M&A in the Pharma sector is down 43%, to 44 transactions, compared with the same period in 2016, which had 77 transactions. Spending is also down in for the first six months of 2017. Through June 15, acquirers announced $19.2 billion in committed financing, down 66% from the same period in 2016, when approximately $56.5 billion was spent. There are deals being done, regarding this issue, but most are not M&A. In fact, several managed care... Read More »
Chinese Investor Group Buys SciClone

Chinese Investor Group Buys SciClone

The Pharmaceutical sector has been relatively slow on the M&A front this year.  U.S. investors seem content to sit on the sidelines and wait for something to happen, such as the rumored takeover of Bristol-Myers Squibb (NYSE: BMY) by Pfizer.  (NYSE: PFE) Only 43 deals have been announced through June 9, down nearly 47% compared with the same time last year. Then the Chinese investors arrived. On June 8th, 2017, SciClone Pharmaceuticals Inc. (NASDAQ: SCLN), a specialty pharmaceutical company that provides therapies for oncology, infectious diseases, and cardiovascular disorders, was purchased in a going-private transaction by a consortium of buyers. The consortium consists of entities... Read More »