The latest quarterly report from PricewaterhouseCoopers (PwC) shows both value and volume of pharmaceutical mergers and acquisitions increased in the fourth quarter of 2013. Key contributions to the increase in deal value to public offerings were Abbott unit Abbvie and Pfizer’s Zoetis.
The report said that pharma M&A value rose by 103% to $37 billion in the last quarter while volume of deals increased 24% to a total of 31 deals. Noticeably, pharma firms avoided mega-mergers and focused instead on small acquisitions. Pharma companies also paid attention to balancing portfolios and divestures intended to maximize shareholder value.
PwC spokesman Dimitri Drone said, “We expect the momentum of M&A activity in the fourth quarter, driven by macroeconomic stability and growth in key markets, to continue into 2014 as acquirers remain active in the market … we’re seeing a continued focus on successful execution and PLS companies are continuing to use earn-outs and other deal tools to bridge value gaps, share risk, and complete deals.”
Key closed transactions in the last quarter of 2013 included:
Strategic acquirers continue to be the driving force behind the majority of M&A activity in the pharmaceutical and life sciences industry. Potential synergies and other benefits have driven a higher success rate for strategic buyers, the report said.