|Pharmaceutical Mergers and Acquisitions, 2000 to 2009|
|Year||Dollar Total||Number of Deals|
By and large the deals involved publicly traded companies. The mega-merger type deals (Top 25) seemed to accelerate slightly in the second half of the decade - avg 3-4/yr over past 5 yrs in contrast to 1-2/yr earlier in the decade. Three of the Top 25 deals occurred in 2009. The GSK merger is still the record holder at $74 B. Teva is by far the most active large merger company in the generics area.
My conclusion. The industry continues to believe that bigger is better in order to compete - at least for now - and in order to compensate for rapidly emptying pipelines in next 5 years. But as my next post attests, I think there is a coming realization that business models will need to change. I would like to see the corresponding value assessment for these mergers - particularly for the acquiring Company's stockholders. Were these mergers a good thing for those investors?
Posted by Bruce Lehr March 26th 2010.