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\nELISABET CRUCES
\nPHARMACEUTICAL INDUSTRY ANALYST<\/p>\n
\nELISABET CRUCES
\nPHARMACEUTICAL INDUSTRY ANALYST<\/p>\n
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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.<\/p>\n
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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).<\/p>\n
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Figure 1:\u00a0<\/strong>Disclosed M&A deal value in Q2 2019 was $105.3 billion. <\/p>\n 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. \u00a0For the purposes of this analysis, we defined high-value new M&As as those worth more than $100 million.\u00a0 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.<\/p>\n <\/p>\n 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, in\u00adcluding Pfizer\u2019s $11.4 billion offer for Array, Merck & Co.\u2019s purchases of Peloton Therapeutics for $2.2 billion and Tilos Therapeutics for $773 million. Dermatology was represented by Nestl\u00e9\u2019s decision to divest Nestl\u00e9 Skin Health for $10.2 billion to a consortium led by the investment firm EQT.<\/p>\n The musculoskeletal market was led by Vertex and its intention to acquire Exonics Therapeutics for $1.05 billion as well as Pfizer\u2019s offer for Therachon for an up-front fee of $340 million plus $470 million in milestone fees. Novartis also acquired IFM Therapeutics\u2019s IFM Tre, a developer of NLRP3 antago\u00adnists for inflammation, fibrosis and neuroinflammation, for an up-front fee of $310 million and $1.3 billion in milestone fees.<\/p>\n Services firms were also presented in this quarter with Catalent\u2019s acquisition of Paragonfor $1.2 billion and Cordlife\u2019s approach for Global Cord Blood for $900 million, as were medical device companies, with the 3M\u2019s purchase of Acelity and its KCI subsidiaries for $6.7 billion, including $4.4 bil\u00adlion and assumption of debt.<\/p>\n <\/p>\n 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).<\/p>\n <\/p>\n <\/p>\n Figure 2:\u00a0<\/strong>Q2 2019 M&A deal-making activity in APAC region led by Mainland China- and Hong Kong-based companies. <\/p>\n 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.<\/p>\n We\u2019ll continue to monitor the biopharma M&A landscape throughout 2019 for this and other trends.<\/p>\n <\/p>\n 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.<\/strong><\/em><\/p>\n \u00a0<\/em><\/p>\n Author\u2019s note:\u00a0 All data contributing to this analysis was sourced from\u00a0<\/em>Cortellis Deals Intelligence<\/a>.<\/em><\/p>\n Negotiate your best deal possible using\u00a0Cortellis Deals Intelligence<\/a>, the industry\u2019s highest quality and largest deals database.\u00a0Watch our video to see how<\/a>.<\/p>\n <\/p>\n
\nSource:\u00a0<\/strong>Cortellis Deals Intelligence<\/a>\u00a0TM<\/sup><\/p>\nNinety five percent of total M&A value driven by just 27 deals<\/h3>\n
Top deals and dealmakers<\/h3>\n
China-based companies paced APAC M&A activity<\/h3>\n
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\nSource:<\/strong>\u00a0Cortellis Deals Intelligence<\/a>.<\/p>\nHigh-value M&As trend to continue<\/h3>\n