In 2022, mergers and acquisitions of biopharmaceutical companies may be more active

According to data, as of December 17, the total value of global mergers and acquisitions in 2021 will exceed 5.
63 trillion US dollars, a year-on-year increase of 63%
.
Among them, it is worth mentioning that medical mergers and acquisitions accounted for 10.
5% of global mergers and acquisitions, with a total value of more than 590 billion US dollars; and the transactions announced and completed in the first three quarters of 2021 have already exceeded the total transactions in 2020.
amount
.
Among them, in terms of merger and acquisition value, there are at least 4 transactions with a value of more than 10 billion US dollars, including Australian biotechnology companies CSL, Thermo Fisher, Merck and Siemens
.
Specifically, in December 2021, Thermo Fisher announced the completion of the acquisition of PPD, Inc.
for $17.
4 billion
.
It is understood that after this transaction, Thermo Fisher will further expand its value proposition in the field of biotechnology and pharmaceuticals, and provide clinical development covering from drug discovery, safety, efficacy and medical effect evaluation, to drug clinical Trial management, and global services throughout the drug development and manufacturing process
.
In the same month, Australian biopharmaceutical company CSL and Swiss pharmaceutical company Vifor Pharma jointly announced an agreement whereby CSL would acquire all publicly held shares of Vifor Pharma at a price of CHF 167 (approximately US$179.
25) per share, with the total equity value of Vifor Pharma worth 109 billion Swiss francs (approximately $11.
7 billion), and the transaction was paid in U.
S.
dollars
.
In November, Merck announced that it had completed the acquisition of Acceleron for $180 per share in cash, bringing the total equity value to nearly $11.
5 billion
.
It is reported that the acquisition will further improve Merck's cardiovascular product portfolio and pipeline and strengthen its business development strategy
.
In April, Siemens announced the acquisition of Varian for $16.
4 billion
.
Through this acquisition, the two parties will achieve a strong combination in the fields of imaging diagnosis, in vitro diagnosis and interventional therapy
.
It is reported that with Varian becoming a new business unit of Siemens Healthineers, it is expected to achieve synergies of at least 300 million euros per year starting from fiscal year 2025. .
However, it should be noted that while the mergers and acquisitions of pharmaceutical companies are in full swing, although the mergers and acquisitions of biopharmaceuticals are still active, they have also cooled down significantly
.
According to data, the total number of biopharmaceutical M&A transactions in 2021 is only 107, down 11% from the previous year, while the decline in M&A amount has reached 38%
.
In addition, the total value of the top ten biopharmaceutical M&A transactions in 2021 is nearly $53 billion, far below the $97 billion in 2020, and only a quarter of the $207 billion in 2019
.
The analysis believes that this is mainly due to the large number of super-large mergers and acquisitions transactions in 2019, which led to the quiet period of mergers and acquisitions in the biopharmaceutical industry
.
Therefore, many people in the industry believe that due to the impact of the epidemic, many large pharmaceutical companies have a large amount of cash in hand, and the value of the target after the epidemic bubble burst, the biopharmaceutical M&A activities in 2022 may be more active, in terms of quantity and amount.
Both are expected to increase
.
Disclaimer: Under no circumstances does the information or opinions expressed in this article constitute investment advice to anyone
.