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Emerging trends in the evolving Pharma M&A landscape

Published on September 21, 2009 at 6:15 AM · No Comments

Reportlinker.com announces that a new market research report is available in its catalogue.

Reportlinker Adds The Evolving Pharma M&A Landscape: Emerging trends and predicted post-blockbuster targets

http://www.reportlinker.com/p0148139/Reportlinker-Adds-The-Evolving-Pharma-MA-Landscape-Emerging-trends-and-predicted-post-blockbuster-targets.html

Executive Summary

Pharmaceutical market growth rates have halved inside the past five years, and will remain modest into the next decade. At the same time, new drug approval rates have slowed. With costs continuing to rise, the industry’s margins are already being squeezed, but will come under growing pressure as payers adopt more stringent pharmaceutical cost-containment policies and as patents on a slew of blockbusting brands expire.

The world’s ten biggest pharmaceutical companies have committed almost $230bn to M&A deals since the beginning of 2007. The size of their assets and the cash-generating capabilities of their existing businesses have rendered them largely immune from the effects of the global economic downturn, during which big pharma M&A spending has actually accelerated. Key M&A announcements will continue to be made on a regular basis into 2010 and beyond.

Key findings of this report

• The pharmaceutical industry’s ten biggest players face the expiry of patents on brands that generate annual revenues of more than $130bn within the next five years. This ‘patent cliff’ is driving the acquisition of biotech assets designed to strengthen big pharma pipelines.

• Biotech/biopharma companies were the subject of nearly half the M&A transactions completed or announced by leading pharmaceutical companies between January 2007 and July 2009, and accounted for four of the ten biggest M&A deals witnessed in that period.

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The opinions expressed here are the views of the writer and do not necessarily reflect the views and opinions of News-Medical.Net.



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