Pharmaceutical and life sciences deals insights: Q3 2016 update
 

Deal activity declined in both volume and value in Q3

The considerable decrease in deal value was the result of a reduced number of mega and other large deals (especially deals greater than $1 billion which experienced a volume and value decline of 50% and 61%, respectively). The reduction in deal activity relative to the prior year continues to be driven by a combination of general market forces, including uncertainty around potential interest rate movements and industry specific factors. A total of 90 deals were announced amounting to $42 billion in disclosed deal value during Q3 2016. Of these, 26 transactions were completed, while 64 are pending.

The number of megadeals halved during the quarter  

The pharmaceuticals segment followed with 37 deals worth $8.5 billion. Overall, 81% or $33.8 billion of the total PLS deal value involved companies in the United States.  The number of deals that surpassed the billion-dollar mark halved during the quarter – from 14 deals in Q2 2016 to 7 deals in Q3 2016. The transaction with the highest value was worth $14.1 billion. In terms of deal value, biotechnology was the largest segment with 20 deals worth $20.9 billion. The pharmaceuticals segment followed with 37 deals worth $8.5 billion. Overall, 81% or $33.8 billion of the total PLS deal value involved companies in the United States.

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Dimitri Drone
Global Pharmaceutical and life sciences Deals Leader
Tel: +1 (973) 236 4977
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James Woods
Principal,
PwC’s Deals Practice
Tel: +1 (617) 530 4133
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Karen C. Young
US Pharmaceutical and life sciences Assurance Leader
Tel: +1 (973) 236 5648
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