Global Pharma & Life Sciences Deals Insights Year-end 2018 (I)

Executive summary 

Despite a strong desire for companies to be active in M&A and continued acquisition and divestiture evaluation, many buyers were kept from executing on their inorganic growth agendas due to inflated valuations (related to bid/ask differences), leadership changes (allowing time for new strategy to be actioned), and political and regulatory uncertainty (impacting drug pricing and the broader healthcare landscape). 
While the total deal value was higher in 2018 (primarily driven by the Takeda/Shire $81.7B megadeal), lower volumes reflect the challenges faced in completing deals. 

“We expect 2019 to be a robust year for M&A in our sector as the underlying fundamentals have never been better. 

The recent BMS & Celgene combination demonstrates that we are off to a strong start. 

Companies need to grow inorganically and they have access to capital, capital markets / biotech prices have begun to normalize, management changes have stabilized, and companies are ready to reshuffle their portfolios in order to transform. 

We expect to see acquisitions and divestments of non-core assets to be the result.” — 

Glenn Hunzinger, US PLS Deals Leader, PwC

Ver:

Takeda se queda con... Shire

Deal value and volume overview $81.7B 8 mega deals*

• • The Pharma and Life Sciences (PLS) industry has been volatile over the past two years, likely impacted by major events such as leadership changes at major companies, tax reform and mid-term elections. 
• • The PLS sector has seen eight megadeals in the 2018 fiscal year, matching the number of megadeals that were announced in the 2017 fiscal year. 
• • In Q4 2018 deal volume declined after two quarters of increases. Deal value continues to fluctuate depending on the presence of megadeals. 
• • While the deal volume of Q4 2018 decreased, it remained similar to the levels exhibited through much of 2017.
  
  
  
  Largest transaction 
• The largest announced transaction of the year was Takeda’s acquisition of Shire. The Japanese pharma giant agreed to purchase Shire for approximately $81.7B, which is $70.2B larger than the second largest deal of the year.
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