Biotech M&A Activity on the Rise

 

FOR IMMEDIATE RELEASE Sanford B. Steever, Editor
Steve Monroe, Editor
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com

NORWALK, CT – February 23, 2011 – According to Deal Search Online, an Irving Levin Associates M&A database, $57.5 billion was committed to biotechnology M&A in 2010, a 21% increase from last year despite there being 78 fewer reported deals compared to 2009.  This is the second highest amount of money committed to the biotechnology sector over the past decade; in 2008, nearly $94 billion was committed.  The biotechnology industry posted a total of 115 M&A deals in 2010, a 40% decrease from 2009’s decade high 193 deals.  However, the average price per deal has risen indicating that buyers are more confident in committing more capital to deal making. 

The five largest biotechnology M&A transactions reported in 2010 are listed below.

1.  Sanofi-Aventis SA acquired Genzyme Corp. for $18,500,000,000
2.  Astellas Pharma, Inc. acquired OSI Pharmaceuticals, Inc. for $4,000,000,000
3.  Grifols, SA acquired Talecris Biotherapeutics Holdings Corp. for $4,000,000,000
4.  Celgene Corp acquired Abraxis BioScience, Inc. for $2,900,000,000
5.  Johnson & Johnson Inc. acquired Crucell NV for $ 2,290,000,000

The Sanofi-Aventis SA takeover of Genzyme Corp. for $18.5 billion announced in the third quarter of 2010 alone was larger than the M&A totals in 2002, 2003, and 2004.  This mega deal was also the second largest takeover of the past decade, behind Roche Holding AG’s $46.8 billion acquisition of the remaining interest in Greentech in 2008. 

Over the past decade there have been a total of 1,234 reported biotech M&A deals, which generated a total of $347.5 billion in transactions in the ten-year period ended December 31, 2010, according to data provided by Deal Search Online, an Irving Levin Associates M&A database.  The number of deals reported and the amount of dollars committed to the biotechnology M&A market has gradually increased over the last decade.  The increase in deal and dollar volume over the past few years has been driven by big pharmaceutical companies which are in search of new blockbuster drugs to replace existing drugs and their revenue, when they go off patent over the coming years.

For more information on DealSearchOnline.com or for a subscription to any Irving Levin publication, call 800-248-1668 or go to www.levinassociates.com.  Irving Levin Associates, Inc. was established in 1948 and is based in Norwalk, CT.  This privately held corporation publishes research reports and newsletters, and maintains health care and seniors housing M&A databases.