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Pharma industry records 49 deals worth $16.7 billion in May 2017

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One of the major transactions in May 2017 includes the proposed $7.4 bn combination of INC Research and inVentiv Health

The M&A activity in the pharmaceutical and healthcare industry was focussed on the outsourcing service segment, which recorded $2 billion transactions. The industry recorded a total of 49 deals worth $16.7 billion in May 2017, as compared to 33 deals worth $14.7 billion in April 2017. One of the major transactions in May 2017 includes the proposed $7.4 billion combination of INC Research and inVentiv Health, which is expected to enhance the group’s therapeutic expertise and suite of outsourced services across the drug development and commercialisation continuum.

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Source: GlobalData

May 2017 Charts

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Source: GlobalData

Following the closure of the transaction, INC Research shareholders are expected to own approximately 53 per cent and inVentiv shareholders are expected to own approximately 47 per cent of the combined company on a fully diluted basis. Advent International and Thomas H Lee Partners, both private equity firms and the current equal equity owners of inVentiv, will remain as investors in the combined company.

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Source: GlobalData

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Source: GlobalData

Further, Thermo Fisher announced the acquisition of Patheon for $7.2 billion, the second major deal announced in May 2017. This transaction is expected to provide an opportunity to Thermo Fisher Scientific to enter into CDMO (contract development and manufacturing organisation) market and strengthen its position by adding complementary services. Goldman Sachs is financing the transaction, which is expected to close by the end of 2017.

Venture capital investments surge in May 2017

The venture capital market recorded an increase in the deal activity with 76 deals worth $1 billion in May 2017, as compared to 44 deals worth $489.4 million in April 2017. Iterum Therapeutics’ $65 million and Genoa Pharmaceuticals’ $62 million financing deals are among the notable venture funding deals announced in May 2017.

About GlobalData

GlobalData is a leading provider of global business intelligence, including market, competitor, product and customer information. It provides in-depth research, analysis, data and forecasts through a range of interactive online databases, reports and management briefings. GlobalData has a large team of experienced research and analysis, consulting, and marketing experts. It has a global presence, including key offices in the US, Europe and Asia. The group has over 50 years of experience of delivering market intelligence data and analysis and a highly experienced senior management team.

(The analysis was done by Naveen Reddy Kalluri, Head of News & Deals Practice, GlobalData)

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