PwC’s Diagnostics 2011 provides an overview of M&A deal activity during the past two years and the factors driving it, the development of new prospects for early detection testing and a review of significant events for the development of personalised medicine. The report also includes an in-depth discussion about trends in companion diagnostics and business model considerations for pharmaceutical companies.
PwC’s report highlights how multi billion dollar IVD (in vitro diagnostics) deals in the first seven months of 2011 more than tripled M&A deal value from 2010 to over $15 billion.
According to PwC’s review of the IVD sector, investor interest in the global IVD market is expected to grow in 2012-2014 following a surge in M&A deal values, an acceleration of companion diagnostics partnerships, and the emergence of new prospects for early detection testing.
Interest in the IVD market is coming not only from existing players, but also new entrants such as financial investors, life sciences research groups, clinical laboratories and medical technology players.
PwC expects the IVD competitive landscape will be redefined by new market leaders and larger deals as players bulk up on market share, but sustained momentum of companion diagnostics partnerships with pharmaceutical companies will depend on actions by governments, regulators, payers and industry to support diagnostics innovation.
The report covers the following themes that will likely shape future M&A activity in the IVD sector to 2015: