PwC: Pharma M&A Value and Volume Increased in Q4 2013

The value of pharmaceutical mergers and acquisitions shot up 103 percent to $37.1 billion, while the number of deals rose by 24 percent to 31 deals in the fourth quarter of 2013, a new report from PricewaterhouseCoopers says. PwC attributes the increase in deal value to initial public offerings by Abbott unit AbbVie and Pfizer’s Zoetis.

Pharmaceutical companies for the most part avoided mega-mergers, instead focusing mostly on acquiring smaller biopharma companies, while balancing their own portfolios and divesting up to $3.8 billion dollars in moves intended to maximize shareholder value.

Four deals were closed among biotechnology companies in the fourth quarter — a rate unchanged from the previous quarter. However, those deals increased in value to $9.9 billion, thanks largely to Amgen’s acquisition of Onyx Pharmaceuticals, the report says.

PwC says the trend may very well continue into 2014. “We expect the momentum of M&A activity in the fourth quarter, driven by macroeconomic stability and growth in key markets, to continue into 2014 as acquirers remain active in the market … we’re seeing a continued focus on successful execution and PLS companies are continuing to use earn-outs and other deal tools to bridge value gaps, share risk, and complete deals,” said PwC spokesman Dimitri Drone.

Read the report at www.fdanews.com/ext/resources/files/02/02-11-14-PwCReport.pdf. — Lena Freund

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