Pharmaceutical Merger and Acquisition Activity Steady but Declining Slightly, According to New M&A Report from Irving Levin Associates

FOR IMMEDIATE RELEASE  Stephen M. Monroe, Editor
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NORWALK, CT – October 18, 2012 – A new five-and-a-half year pharmaceutical M&A report published by Irving Levin Associates, Inc. reveals steady activity followed by a slight decline in the last 18 months. Merger and acquisition activity in the pharmaceutical sector of the health care industry proceeded at a fairly steady level in terms of the number of deals announced from January 2008 through 2010, which was consistent with the activity level for this sector for several prior years, with the exception of 2007, when the number of transactions spiked more than 25% to 180 announced deals in that year. In 2011, the number of transactions faded by nearly 20%—a trend that appears to be continuing into 2012, as the 52 transactions announced in the first half of 2012 are about 10% less than the 58 announced in the first half of 2011.

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

Pharmaceutical Mergers and Acquisitions January 1, 2007 – June 30, 2012

Year

Number of Transactions

Dollar Volume of Transactions

2007 180 $71,600,000,000
2008 140 $40,660,000,000

2009

138

$147,120,000,000

2010

137

$39,850,000,000

2011

114

$44,140,000,000

2011 First 6 Months

58

$36,560,000,000

2012 First 6 Months

52

$26,850,000,000

During the five-and-a-half year period covered in this report, the pharmaceutical M&A market accounted for 761 transactions and a dollar volume of $370 billion (based on prices revealed at the time of the announcement). The dollar volume reported for those transactions remained at a fairly constant $39-44 billion range during the 2008-2010 period of the Great Recession and into 2011-12. The exception was 2009, when two mega-deals—Pfizer’s $68 billion acquisition of Wyeth and Merck’s $41 billion acquisition of Schering-Plough—caused the reported dollar volume to explode, reaching $147 billion for the year.

The Pharmaceutical 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, data tables and more. The report was recently published and can be purchased at http://www.levinassociates.com/pharma-description.

For more information on The Pharmaceutical 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.