Cortellis report: M&A value decreases by 7% to $105.3bn in Q2 2019

In early 2019, we released an in-depth analysis of 2018 deals activity. Here, we examine more recent activities and discuss mergers and acquisitions in the second quarter of 2019.


More deals, but lower total value

Total disclosed biopharma mergers and acquisitions (M&A) value dropped slightly in the second quarter of 2019, down 7% from a value of $113.7 billion in the second quarter of 2018 to $105.3 billion in the same quarter this year. One hundred thirty-six new M&As were registered in Q2 2019, up 3% from 132 in the same quarter last year (Figure 1).


Figure 1: Disclosed M&A deal value in Q2 2019 was $105.3 billion.
Source: Cortellis Deals Intelligence TM


Ninety five percent of total M&A value driven by just 27 deals

We continue to see the trend of a smaller number of high-value deals driving up total deal value: 27 high-value M&A deals had a combined (and staggering) value of $99.9 billion.  For the purposes of this analysis, we defined high-value new M&As as those worth more than $100 million.  Eleven of those M&As reported were worth more than $500 million each, representing 94.9% of the total disclosed figure of $105.3 billion.


Top deals and dealmakers

AbbVie led the M&A activity in the biopharmaceutical sector with its $63 billion bid for Allergan. In addition, a significant number of biopharma companies also expanded their portfolios in areas such as oncology, in­cluding Pfizer’s $11.4 billion offer for Array, Merck & Co.’s purchases of Peloton Therapeutics for $2.2 billion and Tilos Therapeutics for $773 million. Dermatology was represented by Nestlé’s decision to divest Nestlé Skin Health for $10.2 billion to a consortium led by the investment firm EQT.

The musculoskeletal market was led by Vertex and its intention to acquire Exonics Therapeutics for $1.05 billion as well as Pfizer’s offer for Therachon for an up-front fee of $340 million plus $470 million in milestone fees. Novartis also acquired IFM Therapeutics’s IFM Tre, a developer of NLRP3 antago­nists for inflammation, fibrosis and neuroinflammation, for an up-front fee of $310 million and $1.3 billion in milestone fees.

Services firms were also presented in this quarter with Catalent’s acquisition of Paragonfor $1.2 billion and Cordlife’s approach for Global Cord Blood for $900 million, as were medical device companies, with the 3M’s purchase of Acelity and its KCI subsidiaries for $6.7 billion, including $4.4 bil­lion and assumption of debt.


China-based companies paced APAC M&A activity

Hong Kong-based firms concentrated the highest M&A transactions in the Asia-Pacific region with a disclosed total value of $900 million. Mainland Chinese firms also signed deals worth $500 million, followed by Australian companies, which reported a total M&A deal value of $87 million (see Figure 2).



Figure 2: Q2 2019 M&A deal-making activity in APAC region led by Mainland China- and Hong Kong-based companies.
Source: Cortellis Deals Intelligence.


High-value M&As trend to continue

As Q2 wound down and Q3 started, the trend of high-value M&As did not slow down. Boehringer Ingelheim announced its $1.2B purchase of AMAL Therapeutics while Agilet moved to acquire Bio-Tek for $1.165 billion.

We’ll continue to monitor the biopharma M&A landscape throughout 2019 for this and other trends.


Complete the form to the right for a complete Q2 2019 analysis, including a deeper look at key M&As, a review of target portfolios by APAC companies and more insight on early Q3 2019 high-value and diversified M&As.


Author’s note:  All data contributing to this analysis was sourced from Cortellis Deals Intelligence.

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