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    Home > Active Ingredient News > Drugs Articles > Rich and willful, atweis spent $111.5 billion on M & A in three years, ranking first

    Rich and willful, atweis spent $111.5 billion on M & A in three years, ranking first

    • Last Update: 2015-01-22
    • Source: Internet
    • Author: User
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    Source: Xinkangjie 2015-1-22 2014 achieved an amazing performance in the field of biopharmaceutical transactions, which has exceeded a simple assumption The soaring stock market and the fierce competition for assets have promoted and caused the sharp rise of transaction value in the field of biopharmaceutical This trend can be seen from the analysis of the average transaction value in the table below The analysis of transactions below $20 billion in the table below shows that the average value of transactions in the field of biopharmaceuticals in 2014 was $9.11 billion, up 39% year-on-year from 2013 Further research on the data of evaluatepharma shows that there is a huge increase in the volume of medium-sized transactions In 2014, the average value of biopharmaceutical transactions between us $250 million and US $1 billion was US $2.3 billion, compared with us $1.7 billion in 2013 At the same time, if you look closely at the biggest players in biopharmaceutical M & A, you will find that large pharmaceutical companies are generally cautious, although some large pharmaceutical companies seem willing to sit at the M & a negotiation table again According to the table above, looking at the average value of transactions in the field of Biopharmaceutics, excluding some factors, shows how fast the value has risen in the past few years In this table, only the mergers and acquisitions carried out by biopharmaceutical companies are included, excluding medical technology companies, and the super mergers and acquisitions carried out in recent years with distorting effects, such as the acquisition of Elgin by atvis in 2014 with us $66 billion, gene Tech by Roche in 2009 with us $46.8 billion, and Wyeth and Merck by Pfizer in 2009 with us $68 billion $billion acquisition of Schering plough The analysis shows that the valuation has returned to the pre collision level by 2013, but further accelerated in 2014 This will be a small surprise for the followers of the biotechnology stock index, especially the NASDAQ Biotechnology Index in the United States In addition, a recently released report shows how M & A transactions in the field of biopharmaceuticals can reach a staggering $212 billion without any real increase in the number of transactions In 2014, two great deals were carried out by atvis First, it purchased forest lab with us $28 billion, and then it won Elgin with us $66 billion At the same time, Novartis acquired GlaxoSmithKline's antitumor business for $16 billion, and GlaxoSmithKline acquired Novartis' vaccine business for $7 billion, except for influenza vaccine, although such a transaction would not happen frequently But all of this doesn't fully explain why the average value of biopharmaceutical transactions has soared The following shows the distribution of transactions in the field of biopharmaceuticals of different scales The increase in the number of transactions between us $1 billion and US $10 billion is very obvious The rising stock market means that more companies have now exceeded the threshold of the blockbuster market value, which also means that for those companies with M & A ambitions, they will pay more expensive risks in M & A In the past year or so, those ambitions have been largely hidden by specialty and generic companies In the past three years, from the perspective of transaction volume and capacity in the field of biopharmaceuticals, except for large pharmaceutical companies, the large pharmaceutical companies are more active in this field These companies are no less than atvis and Valeant, among which atvis is the top with three-year expenditure of US $111.5 billion, as shown in the table below The report only covers activities in the field of Biopharmaceutics, so it excludes Lilly's $5.4 billion acquisition of Novartis' animal health business Large pharmaceutical companies have been more inclined to risk sharing cooperation, although to some extent, some large pharmaceutical companies did enter the M & a war again in 2014 This report carefully reviews the companies that have invested the most in biopharmaceutical M & A in the past three years, and finds that in the past three years, large pharmaceutical companies have carried out $82 billion of M & A transactions The same analysis shows that in 2014, large pharmaceutical companies carried out a total of US $24 billion in M & A transactions Among them, Roche purchased intermune biopharmaceuticals in San Francisco for us $8.3 billion, Merck purchased Cubist pharmaceuticals for us $8.4 billion and idix pharmaceuticals for us $3.85 billion, which may indicate that the CEOs of some large pharmaceutical companies are more and more willing to carry out risky and buy bets However, on the other hand, the asset swap between Novartis and GlaxoSmithKline, as mentioned above, shows that compared with other people, internal problems are more prominent, as is the fact that Lilly has failed to carry out any M & A in the field of Biopharmaceutics in the past three years Of course, Aberdeen is eager to be the first bird Next, in the world of biopharmaceutical transactions, large pharmaceutical companies with more enthusiasm will be welcomed However, many company executives have publicly announced that they refuse to consider the valuation of deals in the biopharmaceutical sector, which is now in the game era The market situation shows that the M & A environment in the field of biopharmaceuticals in 2015 remains healthy But it's hard to believe that many of the high valuation companies sold in the near unchecked boom were trying to attract suitors.
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