Mid Pharma Licensing and M&A Trends, 2011–16

Mid Pharma Licensing and M&A Trends, 2011–16

  • March 2017 •
  • 68 pages •
  • Report ID: 4883978 •
  • Format: PDF
Mid Pharma Licensing and M&A Trends, 2011–16

Between Q1 2011 and Q3 2016, the nine-company Mid Pharma cohort was responsible for around $200bn in up-front mergers and acquisitions (M&A) value and $10bn in up-front licensing value, driving deal volume and deal value in the biopharmaceutical sector. The total number of alliances peaked in 2014, whereas the up-front value attached to these alliances peaked in 2015. M&A volume has increased every year since 2011, and up-front M&A value peaked in 2015.

The Mid Pharma group signed more than 300 alliance deals, from discovery through to marketed assets, and inked 50 acquisitions during the nearly six-year timeframe. For alliances, the top deal-makers by volume were Merck KGaA and Celgene; in terms of value, Celgene was by far the biggest spender on up-front alliance payments. For M&A, the top buyers were Allergan and Shire (by volume and by value).

Among therapeutic categories, oncology held the top spot in both alliance volume and alliance value. For M&A, there were more acquisitions driven by immunology and inflammation assets than any other therapeutic category. Acquisitions during the period broke multiple records, including the largest-ever biotech acquisition premium and the most money paid for a clinical-stage biotech. However, M&A value was driven by a small handful of large deals in which the target companies’ product portfolios and pipelines were diversified across several therapeutic areas.

The majority of alliances focused on technologies and product candidates in early-stage development (discovery or preclinical stage), whereas those companies most likely to be acquired by Mid Pharma members had lead assets on the market or in Phase II development.

The sources for the deal data used in this report are Informa's Medtrack and Strategic Transactions.