GEN published a nice summary of the top pharmaceutical merger and acquisition deals of the past decade. The data was supplied by DealSearchOnLine.com.
| Pharmaceutical Mergers and Acquisitions, 2000 to 2009 | ||||
| Year | Dollar Total | Number of Deals | ||
| 2000 | $97,424,934,321 | 41 | ||
| 2001 | $27,749,309,161 | 87 | ||
| 2002 | $66,093,147,595 | 147 | ||
| 2003 | $23,625,371,126 | 173 | ||
| 2004 | $95,213,138,700 | 171 | ||
| 2005 | $46,553,632,500 | 128 | ||
| 2006 | $74,806,033,300 | 138 | ||
| 2007 | $71,600,790,685 | 180 | ||
| 2008 | $40,664,107,740 | 140 | ||
| 2009 | $147,237,047,186 | 140 | ||
| 10-Year Total | $690,967,512,314 |
1,345 | ||
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.
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