|
 Competition for tomorrow's blockbuster drugs is now intense,
inflating the cost of deals and pushing pharmaceuticals to center
stage in overall mergers and acquisitions (M&A).
So far this year, pharma deals have accounted for 10.5 percent of
total M&A worldwide, up from a more traditional share of 3 to 4
percent, according to Thomson Reuters data.
AbbVie's planned purchase of Pharmacyclics is the largest global
pharmaceutical deal of 2015 to date and takes M&A activity in the
sector to a six-year high.
M&A transactions targeting biotech and pharma companies in 2015 have
now reached $59.3 billion, a 94 percent increase over the same
period a year ago and the highest volume for this stage in any year
since 2009. For a graphic on pharma deals see
http://link.reuters.com/tyc34w
Across the industry, big drugmakers are eyeing medicines developed
by nimble biotech firms as they seek to replenish portfolios that
are being eroded as older products face loss of patent protection.
Pharmacyclics gives AbbVie access to a blood cancer treatment called
Imbruvica that is expected to be one of the world's top-selling
cancer drugs, reducing its reliance on the ageing rheumatoid
arthritis drug Humira.
"This acquisition serves as a reminder that large pharma is willing
to pay up for novel, quality products," said Maxim Jacobs, an
analyst at Edison Investment Research.
The deal also signals AbbVie Chief Executive Richard Gonzalez's
readiness to chase other assets after a failed deal to buy Shire for
$55 billion last year.
[to top of second column] |
In many ways, 2014 was the year of deals that didn't happen. Not
only did AbbVie's plans for Shire unravel but Pfizer proved unable
to land AstraZeneca after a $118 billion takeover fight.
Yet both U.S. predators have now bounced back with alternative
deals, with Pfizer agreeing to buy Hospira, a specialist in
injectable drugs, for around $15 billion last month.
Valeant Pharmaceuticals also agreed last month to acquire
gastrointestinal drugmaker Salix Pharmaceuticals for more than $10
billion in another notable biotech transaction.
(Editing by Pravin Char)
[© 2015 Thomson Reuters. All rights
reserved.] Copyright 2015 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
