Q3 2019 M&A highlights

We’ve recently wrapped up analysis of Q3 2019 M&A activity around the world.  Here are a few highlights:

Q3 2019 new M&A volume and total deal value increased by 4% and 10%, respectively

Total disclosed biopharma mergers and acquisitions (M&A) volume increased slightly in the third quarter of 2019, up 4% from 140 new M&As in Q3 2018 to 146 in the same quarter this year. Total disclosed deal value increased by 10% to $21.7 billion from $19.7 billion (Figure 1).


Figure 1: M&A deal activity in the third quarters of 2015-2019
Source: Cortellis Deals Intelligence


Fourteen high-value new M&As tracked, each worth in excess of $500 million

The third quarter of 2019 saw 14 high-value new M&As, each worth in excess of $100 million. Fourteen of those M&As were worth more than $500 million each, representing 83.5% of the total disclosed figure of $21.7 billion.


Top deals and dealmakers

Sumitomo Dainippon Pharma formed an alliance with Roivant Sciences, including its 46% ownership interest in Myovant Sciences, for $3 billion, including a 10% equity stake. In addition, Vertex Pharmaceuticals is acquiring Semma Therapeutics for approximately $950 million in cash as it seeks to progress the biotech’s pluripotent stem cell therapy into clinical development for Type I diabetes. And, Lundbeck approached Alder BioPharmaceuticals for up to $1.95 billion ($18.00/share in cash up front and one non-tradeable contingent value right of $2.00/share) upon EU approval of Alder’s lead asset eptinezumab.


Low levels of M&A activity across APAC

Companies based in the Asia Pacific (APAC) region generated a collective 14 M&As, a 26% decrease from 19 in the same quarter of 2018. At the same time, the total disclosed deal value increased to $3.8 billion, a 13% increase from Q3 2018 (see Figure 2).

Figure 2: Total disclosed M&A deal value and M&A deal volume by APAC-based companies
Source: Cortellis Deals Intelligence


Key takeaways

In summary, M&A activity seems to be flat as companies potentially look at other options to raise capital as well as pursue licenses and collaborations as means of progressing asset development and commercialization.  Anti-trust concerns prior to horizontal and vertical integration of target companies may also be on the rise, further inhibiting activities.

For a full analysis, including a deeper look at key M&As, a review of target portfolios by APAC companies, and an early outlook on Q4 2019 high-value and diversified M&As, read the full report (available for download to the right of this post).

Note: All data contributing to this analysis was sourced from Cortellis Deals Intelligence from Clarivate Analytics.