Welcome to the latest edition of Insights, an annual review of M&A activity and key trends within the pharmaceutical and healthcare sector, by PricewaterhouseCoopers Corporate Finance.
This report highlights some of the deals and developments seen recently in this dynamic, fast-moving sector. M&A remained at a high level last year fuelled by a rash of mega-deals, particularly in the pharmaceuticals segment, including three sizeable generics transactions. As the industry comes under increasing pricing pressure from governments, reduced pipeline productivity and more challenging generic competition, the scope for economies of scale on a global basis is becoming ever more important.
North America was a focal point for corporate activity in the sector last year although US companies were more often targets than bidders, with a string of large pharmaceutical businesses falling under foreign control. The biotechnology segment continues to attract a great deal of interest with deals becoming larger and increasingly involving the major pharmaceutical players as they seek to boost their R&D pipelines. The trend is also towards outright ownership with a swing away from strategic alliances and joint ventures.
