PwC Reports Pharma Merger And Acquisition Increased In Value And Volume In Q4 2013
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:
- On October 1, Amgen completed its acquisition of Onyx Pharmaceuticals, a developer of oncology therapies, for $125 in cash per share, or a total value of $9.7 billion.
- On October 7, MedImmune, a unit of AstraZeneca, acquired Amplimmune, a developer of immunology therapeutics for oncology and other diseases, for $225 million in cash and up to $275 million in potential contingent payments.
- On December 4, Mylan acquired Agila Specialties Private Limited, a developer of generic injectable products, from Strides Arcolab Limited. Consideration offered in the transaction is up to $1.75 billion, with $250 million held back as contingent consideration.
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.