Is the ‘Blue Moon’ Record Pharma M&A Activity Set to Stay in 2016?
2015 M&A activity has officially come to an end and the final results are in: it’s been a record-breaking year across the border, particularly for the Pharmaceutical industry.
The last 12 months saw deals totaling $300bn within the biopharmaceutical industry and it would seem this sector’s M&A success may not be a rare phenomenon. According to the new Ernst and Young ‘Firepower Index and Growth Gap Report’ published this month, the M&A pace is set to continue well into 2016.
Scale and specialisation have been identified as the key motivators for activity in 2016 as companies focus on achieving growth. This ambition is supported by an increase in available cash flow within many businesses across the industry, and is expected to result in a longer list of acquirers and increased competition surrounding opportunities. In fact, according to EY, three times as many companies in the industry now boast at least $3bn in available acquisition resources when compared to the same time last year.
With positive market conditions predicted to fuel activity, there are a number of factors that are likely to impact activity in 2016. These include an industry-wide focus on value-based drug pricing, as well as political and economic influences. In addition, the industry is finally beginning to see the benefits of organic growth as a result of new drug launches from the big players. Should all factors align positively, then record levels of M&A could become the new norm for the industry.
If you’re considering a merger or acquisition, of whatever size, talk to Benchmark International for specialist and knowledgeable advice. With representation throughout the Americas, Europe, Africa and Asia, Benchmark International can connect you with the right opportunity. To find out more, visit http://www.benchmarkcorporate.com.