Biotech Sector "Hit Hard" by Market Turbulence in Q1-Q3

October 9, 2015

October 09, 2015.

According to Mergermarket's  Pharma, Medical & Biotech Trend Report Q1-Q3 2015, pharma, medical and biotech (PMB) activity hit its largest year-to-date value on Mergermarket record (since 2001), with 954 transactions worth US$ 367.6bn representing a 46.2% increase by value compared to the same period in 2014.   The increase in deal activity has been driven by a surge of M&A within pharma, attracting 268 deals worth US$ 231.5bn, a 93.4% increase compared to the same period last year (251 deals, US$ 119.7bn), says Mergermarket. Biotech, on the other hand, decreased 31.6% by value to US$ 12.6bn (98 deals), down from US$ 18.4bn (111 deals) during year-to-date 2014.   "Market turbulence has hit the biotech sector hard," the report states, "with the NASDAQ Biotechnology Index falling 24% since the year’s peak on 20 June. While some bankers and biotech investors say big pharma companies should step up their efforts to acquire assets at a discount, big pharma executives say they are waiting for a sustained downdraft before considering stepping up M&A activities."   The US (372 deals, US$ 271.4bn) remains the main attraction for activity targeting the PMB sector, with four out of the top five deals worth US$ 127.9bn acquiring US targets. As a result, US activity took a 73.8% share in global deal value targeting the sector during 2015, up from 60.6% for the same period in 2014.    http://www.mergermarket.com/pdf/Mergermarket%20trend%20report.Q1-Q3%202015.PMB.pdf