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M&A activity in pharma and healthcare drops in Sept 2017

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Posts 57 transactions worth $4 billion in September

In September 2017, the pharmaceutical and healthcare industry has recorded a significant drop in the M&A activity. The sector witnessed 65 per cent fall in value terms over the last five months’ average, as companies look at streamlining and consolidating their positions. The industry reported 57 transactions worth $4 billion in September. One of the notable deals in September include the acquisition of Cook Pharmica by US-based drug delivery technology company Catalent, for $950 million in an all-cash transaction. The transaction is expected to strengthen Catalent’s position in biologics development and analytical services, manufacturing, and finished product supply. Cook Pharmica is a provider of contract development and manufacturing services to pharma and biopharma companies.

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Aspen Group subsidiary Aspen Global’s acquisition of the remaining rights of anaesthetic portfolio from AstraZeneca, a biopharmaceutical company, for $766 million; private equity fund CVC Capital Partners Fund VI’s acquisition of product portfolio of women’s health business across contraception, fertility, menopause and osteoporosis from Teva Pharmaceutical for $703 million in cash; and prescription and non-prescription over-the-counter (OTC) medicines provider, Foundation Consumer Healthcare’s acquisition of women health products, including Plan B One-Step and emergency contraception, Take Action, Aftera, and Next Choice One Dose, from Teva Pharmaceutical for $675 million in cash are some of the major transactions reported in September 2017.

M&A (Including Private Equity) Trend Analysis

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Source: GlobalData

Venture Financing Trend Analysis

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Source: GlobalData

In contrast to the trend in the M&A activity, the venture capital market saw rise in deal value, with transactions worth $1.4 billion in September 2017, as compared to $1 billion in August 2017. However, the number of deals decreased from 61 in August to 56 in September. Some of the major transactions in September include 23andMe, a consumer genetics and research company, raising $250 million and WuXi NextCODE, a contract genomics company, raising additional $165 million in series B financing.

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