Biotechnology Merger and Acquisition Activity Continues Slump, According to New M&A Report from Irving Levin Associates

FOR IMMEDIATE RELEASE  Stephen M. Monroe, Editor
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NORWALK, CT – November 6, 2012 – A new three-and-a-half year biotechnology M&A report published by Irving Levin Associates, Inc. shows a continued decline in biotechnology transaction activity during the reported period. Merger and acquisition activity in the biotechnology sector of the health care industry gradually declined in terms of the number of deals announced from January 2009 through 2011. The year 2012 looks to be on track to equal the number of deals in 2011, according to corresponding data from the first six months of both years.

The number of transactions each year and respective annual dollar volume, according to The Biotechnology Acquisition Report, Second Edition, 2012, are listed in the table below.


 

Biotechnology Mergers and Acquisitions January 1, 2009 – June 30, 2012

Year

Number of Transactions

Dollar Volume of Transactions

2009 193 $47,000,000,000

2010

129

$61,000,000,000

2011

80

$33,000,000,000

2011 First 6 Months

48

$12,000,000,000

2012 First 6 Months

49

$15,000,000,000

Dollar volume of transactions peaked in 2010, nearing $61 billion spent on biotech deals—a 30% increase in total dollars spent over 2009, even though the number of deals actually dropped 33%. This can be explained by several large deals announced in 2010. Four of the top five deals made in the last three years were announced in 2010, including a $20.1 billion acquisition of Genzyme Corp. by Sanofi-Aventis SA. This one deal accounted for one-third of all dollars spent in 2010. Subtracting this deal from the 2010 total, dollar volume for that year would be less than the 2009 level. Then, 2011 was significantly weaker than the previous two years, reaching just $33 billion; 2012 appears to be on track to do close to the same.

The top areas involved in biotech M&A included Oncology, Immunology, Neurology, Hematology and Cardiovascular. Pharmaceutical companies dominated the biotech M&A market. In 451 deals, 281 had pharmaceutical companies as the buyer.

The Biotechnology Acquisition Report, Second Edition, 2012 is published by Irving Levin Associates, Inc. The new 2012 edition includes hard-to-find details on Pharmaceutical M&A transactions such as price/revenue ratios when available, and more. The report was recently published and can be purchased at http://www.levinassociates.com/biotech-description.

For more information on The Biotechnology Acquisition Report, Second Edition, 2012 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.