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Mergermarket’s H1 2014 Global Pharma, Medical & Biotech M&A trend report has revealed that:
- Global pharma, medical & biotech (PMB) M&A activity during H1 2014 hit the highest half-year value on Mergermarket record (since 2001), with $260.2 billion-worth of deals — a 227.8% increase from H1 2013 ($79.4 billion). The value so far in 2014 is already higher than the annual value for the last 8 years. Q2, which saw the announcement of 277 deals valued at $195 billion, increased values by 199.5% from Q2 2013 ($65.1 billion) and by 199% from the previous quarter ($65.2 billion).
- The massive increase is mainly due to the announcement of six mega-deals so far this year amounting to a combined total of $156.9 billion, versus two announced in H1 2013 totalling just $27.4 billion. The mega-deals all accounted for 60.3% of the total activity in the sector. The top two deals, each valued over $45 billion, represent the fifth and sixth highest valued PMB deal record.
- PMB, which was only the fifth most active sector in Q1 2014 as well as in H1 last year, was the most active sector globally and accounted for 16.4% of the global M&A value ($1582.9 billion) — a stark contrast to a 7.9%a market share in H1 2013.
- The leading pharma sub-sector saw 153 deals valued at $153.8 billion in H1 2014, up by an impressive 345.4% compared to H1 2013 ($34.5 billion), and representing the highest half-year value since H22006 ($158.2 billion). The sub-sector accounted for 59.1% of total H1 PMB M&A value, up from 43.5% in H1 2013 — seven of the top 10 deals were announced in the pharma sub-sector, including four mega-deals totalling $97.7 billion.
- After decreasing deal values for three consecutive quarters, the M&A activity in the medical sub-sector went up 273.6% to $78 billion in Q2 2014 from $20.9 billion in Q1 2014; this was also a 269.1% increase over Q2 2013 ($21.1 billion).The US-based Medtronic acquired the Ireland-based Covidienin this sectorf or $45.9 billion. The total value in H1 amounted to $98.9 billion, up 276.8% from H1 2013.
- Despite a 35.2% increase in the numbers of deals from H1 2013, biotech M&A has lost its footing and registered a decrease by value for the fourth consecutive quarter. In H1 2014, the sub-sector saw 73 deals valued at $7.58 billion, down 59.3% from the same period last year, and accounted for only 2.9% of all PMB M&A value, far from 23.5% inH1 2013.
- With $158.5 billion worth-of deals, North America reached its second highest half-year value on Mergermarket record (first highest in H1 2009 — $166.9 billion), accounting for 60.9% of total PMB M&A activity. 69.4% of the value is attributable to the pharma sub-sector, including four of the top mega deals. It has been the most active region in the sector for five consecutive quarters.
- Although domestic deals still dominate the scene by number of deals, cross-border deals saw a massive jump of 528.3% with deals valued at $205.8 billion in H12014 from $32.8 billion in H1 2013. They had a 79.1% market share, up from 41.3% last year.