Recap: Notable Life Sciences Merger & Acquisitions in Q1 of 2016
In the previous three months, 166 active M&A deals were reported by Thomson Reuters Recap, with a total disclosed value of $38.6 billion (Figure 1). The total transaction value reduced by slightly less than 50% from the previous quarter signaling a possible change in deal behavior at the start of the year, although the number of agreements continued on a rising trajectory.
Deal activity in 1st Quarter over the years
The first few months of 2016 saw the largest deal return to a value last seen in the first quarter of 2013 with Mylan’s target of Meda worth $7.2 billion, yet the number of deals established surged past the 150 mark; a milestone over the eight years shown. The next sections will focus on the Mylan-Meda transaction and other significant deals, including the acquisition of Alere by Abbott and the double bidding for Affymetrix in the first three months of the year.
Mylan’s $7.2 billion offer for Dymista (allergy) focused Meda
Following the failed $28.9 billion attempt to acquire Androgel maker Perrigo, but building on the successful $5.3 billion acquisition of Abbott’s non-US generics business, Mylan has redirected efforts towards allergy specialist Meda. The offer proposed consists of SEK 165/share ($19.62), worth $7.2 billion in cash and stock. The offer closure was expected by the end of the third quarter. Mylan plans to use the acquisition to expand in the OTC market where Meda currently shows significant presence. The offer follows a previous attempt in April 2014 whereby a bid of $5.1 billion was rejected and all contacts between the two organizations were terminated.
Abbott approaches point-of-care tester Alere with $5.8 billion
Abbott made a launch for Alere, a developer of biomarkers and diagnostics for cancer, cardiology and fertility (figure 2). The $56/share ($5.8 billion) bid was approved by both boards of directors, but was awaiting approval from Alere shareholders. The event signifies Abbott’s attempt to progress in the high growth point-of-care testing arena including non-glucose testing. Alere currently has its Influenza A/B test that can differentiate between influenza A and B swiftly thus supporting quick and efficient treatment while Abbott’s i-STAT, a portable and real-time blood analyzer can be found in critical care environments. The acquisition should push Abbott’s diagnostics revenue past $7 billion; more than $1.25 billion of which should come from Alere’s US presence.
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