20 billion US dollars to ignite the opening mergers and acquisitions hot! Look back to the 2017 Pharmaceutical M & A Top 10

According to data from the market research firm EvaluatePharma, the pharmaceutical industry in 2017 reached 167 deals in 2017. The total amount of transactions in the past year has just been reached to "quiet." According to data from the market research firm EvaluatePharma, in the past year, the pharmaceutical industry has been quietly acquiring mergers and acquisitions Over 77.5 billion U.S. dollars.

Table 1 in the past five years medicine M & A overview

That makes 2017 the slowest pace of mergers and acquisitions in the past five years, and would have been even worse if Gilead Sciences did not suddenly hit the $ 11.9bn takeover of Kite Pharma in the third quarter of 2009. Johnson & Johnson, Johnson) Massive acquisitions in the biopharmaceutical industry have not been seen since the acquisition of Actelion for $ 30 billion in January 2017.

Table 2 2017 Pharmaceutical M & A Top 10

With the eventual passage of the tax reform in the United States, many expect the transaction to improve in 2018, but large pharmaceutical companies may remain unmoved as the valuation of the underlying market picks up.

Although 2018 was the first to start, but the signs show that large pharmaceutical companies continue to be cautious attitude held early in the JP Morgan Chase health Industry investment conferences tend to pull off the M & A activity of the pharmaceutical industry that year, but the only announced merger during this year's session was that Celgene agreed to buy Sanofi for $ 1.1 billion An old drug, while Novo Nordisk said the move to Ablynx's $ 3.1bn takeover was rejected.

However, two new acquisitions worth more than $ 20 billion in a single day have thrilled the industry again. On January 22 local time, Celgene announced that it intends to acquire Juno for approximately $ 9 billion and continue its efforts in CAR-T and TCR treatment on the same day Sanofi also entered into an acquisition agreement with Bioverativ to acquire the latter for about $ 11.6 billion Bioverativ is an independent Biogen divestment of the hemophilia business in 2016 New company

The trend of the past year, the pharmaceutical industry's mergers and acquisitions scale is very dull.With the difference is that with the mergers and acquisitions, the pharmaceutical industry tend to favor 1 billion to 10 billion US dollars in size transactions in these mergers and acquisitions to achieve a certain scale, 26 were completed during the 2015 M & A tide, down from just 8 in 2017. Even in 2013, many considered more normalized, there were 14 such medium-sized deals.

Table 3 Distribution of mergers and acquisitions of different sizes in the past five years

Source: EvaluatePharma

The decrease in the number of deals may be attributed to the higher valuation levels, with biotech companies' valuations steadily climbing since the big sell-off in the biotech industry in 2016, and the entire Nasdaq Biotechnology Index has risen in 2017 18%. In addition, several previously keen to acquire the company and the production of specialty drugs enterprise Recently suffered a lot of problems, may also be the cause of the M & A downturn.

Notably, a number of acquisitions were made for a single business unit in 2017. For example, Ipsen acquired Merrimack's commercial and manufacturing infrastructure, of which Onivyde, the anti-pancreatic cancer drug, is the major loot; Melinta acquired Medicines Infectious Diseases in the fourth quarter; Sawai Pharmaceutical and Shanghai Medicines also added a host of other businesses to its core business.

Most large pharmaceutical companies that are willing to pay more tend to buy companies and products focused on the anti-cancer area. In 2017, Johnson & Johnson and Kylly's Science are clearly the strongest pacers in this hot area. Takeda and Bristol- (Bristol-Myers Squibb) did the same, acquiring Ariad Pharmaceuticals and IFM Therapeutics, respectively. Novartis' approach was slightly different, acquiring Advanced Accelerator Applications for $ 3.9 billion with a view to becoming a part of the radiopharmaceutical industry The acquisition also saved Q4 last year from one of the weakest quarters of pharmaceutical M & A in the past 10 years.

The overall mood in the biopharmaceutical industry is not low, thanks to the FDA's seemingly friendlier, drug Prices are not an immediate issue on the FDA's agenda, and there are also incentives for tax law reform, and optimism can even be boosted by the further rebound in trading activity.