FOR IMMEDIATE RELEASE
Sanford B. Steever, Editor
Gretchen S. Swanson, Analyst
800-248-1668
203-846-6800
Fax: 203-846-8300
pressreleases@levinassociates.com
NORWALK, CT – March 31, 2010 – During the 10-years ended December 31, 2009, a total of 1,171 mergers and acquisitions of biotechnology companies were announced, with disclosed prices totaling more than $295 billion. Each of the 25 largest biotechnology mergers and acquisitions was valued at a price greater than $1.6 billion. Leading acquirers for the decade include Roche, AstraZeneca, GlaxoSmithKline, Amgen, Eli Lilly & Co. and Genzyme Corporation.
The largest deal by far among biotechnology mergers and acquisitions announced in the 10-year period ended December 31, 2009 was Roche Holding AG’s $46.8 billion acquisition in 2008 of the remaining interest in Genentech. Roche had already acquired a majority interest in Genentech in 1990 and in the 2008 acquisition secured the 44.1% it did not already own. The next-largest among biotechnology mergers and acquisitions announced in the past 10 years was AstraZeneca’s $15.2 billion acquisition of MedImmune, announced in 2007.
All of the top 25 biotechnology mergers and acquisitions announced in the ten years ending December 31, 2009 involved a publicly-traded entity as the seller and also as the buyer. In 76% of the 25 largest biotechnology mergers and acquisitions announced in the 10-year period ended December 31, 2009, the target is a revenue-producing biotechnology company. However, among all 1,171 biotechnology mergers and acquisitions announced from 2000 to 2009 only about 18% of the companies targeted were producing any disclosed revenue at the time of acquisition.
Among the top 25 largest biotechnology mergers and acquisitions announced from 2000 through 2009, four companies announced multiple acquisitions: GlaxoSmithKline (4), Amgen, Inc. (2), Eli Lilly & Co. (2) and Genzyme Corporation (2). GlaxoSmithKline announced its $3.28 billion acquisition of the license for almorexant, a sleeping pill, in 2008, and for $2.11 billion GlaxoSmithKline acquired the rights to HuMax-CD20, a leukemia drug, in 2006. GlaxoSmithKline also forged a $1.94 billion alliance in 2007 with Galapagos NV to develop anti-infective pharmaceuticals and GlaxoSmithKline announced its acquisition of ID Biomedical for $1.62 billion in 2005.
Amgen announced its $11.1 billion acquisition of Immunex in 2001 and Amgen announced its $2.65 billion acquisition of Abgenix in 2005. Eli Lilly and Co. announced its $6.5 billion acquisition of ImClone Systems in 2008 and Lilly announced its $2.3 billion acquisition of Icos Corporation in 2006. Genzyme Corporation announced its $2.8 billion acquisition of the Bayer hematologic oncology portfolio in 2009 and Genzyme announced its $1.9 billion acquisition of the worldwide license for mipomersen from Isis Pharmaceuticals in 2008.
Biotechnology Mergers and Acquisitions, 2000 to 2009
Year
Dollars Committed
Number Of Deals
2009
$47,523,349,040
193
2008
$93,879,257,347
148
2007
$42,105,127,700
145
2006
$36,407,170,500
115
2005
$23,196,902,050
113
2004
$6,764,873,000
96
2003
$16,681,231,200
128
2002
$3,274,727,708
96
2001
$20,150,840,000
85
2000
$5,076,797,094
52
Totals
$295,060,275,639
1,171
Only about 18% of the biotechnology companies that were targeted in mergers and acquisitions announced during the 10 years ended December 31, 2009 were producing disclosed revenues at the time of the announcements. Among the top 25 mergers and acquisitions for the same period, 76% of the biotechnology companies targeted were producing revenues at the time the deals were announced.
Most of the top 25 largest biotechnology mergers and acquisitions announced during the 10-year period ended December 31, 2009 targeted a United States-based concern, although seven of the top 25 mergers and acquisitions targeted entities based in Europe. Most of the acquirers in the top 25 biotechnology mergers and acquisitions announced from 2000 to 2009 were also U.S.-based, but also included acquisitions announced by eight companies based in Europe, one in Canada and one in Japan.
Geographically, for the 10-year period ended December 31, 2009, the states that were home to the acquirers in the greatest numbers of biotechnology mergers and acquisitions included California, New York, Massachusetts, New Jersey, Maryland, Pennsylvania, North Carolina, Washington and Texas. Outside the U.S., the countries that were home to the acquirers in the greatest numbers of biotechnology mergers and acquisitions included Switzerland, Germany, England, Netherlands, Japan, Canada, France, Australia and Denmark. On the sell-side, for the same 10-year period, the states that were home to the targets in the greatest numbers of biotechnology mergers and acquisitions included California, Massachusetts, Maryland, New York, New Jersey, Washington, Pennsylvania, North Carolina and Texas. Outside the U.S., the countries appearing most frequently as the home base of the target included Canada, England, Switzerland, Germany and France.
Information in this press release is based on data drawn from DealSearchOnline.com, an online publication of Irving Levin Associates, Inc. Online and available 24/7 at www.dealsearchonline.com, DealSearchOnline.com is a database of current and historic health care mergers and acquisitions, with deal summaries on more than 15,000 mergers and acquisitions since 1993 in the following sectors: Behavioral Health Care; Biotechnology; e-Health; Home Health Care; Hospitals; Laboratories, MRI and Dialysis; Long Term Care; Managed Care; Medical Devices; Pharmaceuticals; Physician Medical Groups; Rehabilitation; and Other Health Care Services. Deal summaries include details such as deal terms, target and acquirer contact information (including e-mail addresses), and price to revenue multiples. Searching is free. Visit www.dealsearchonline.com for a login. Data is immediately available for download or to print, with a credit card or the purchase of a subscription. Certain Irving Levin Associates, Inc. print publications include special online access to the database for subscribers. Call 1-800-248-1668 for details on subscription options, or email customerservice@levinassociates.com.
Click here to get more information on any of our Publications.
