Navigation Links
Big pharma's need to tap M&A for growth will persist in 2014, while dealmaking landscape becomes more competitive
Date:1/12/2014

's Firepower Index revealed that big pharma's firepower increased by nearly US$100 billion, or 15%, in 2013. This increase was almost entirely driven by rising equity market valuations, which accounted for more than 90% of the increase.
  • The balance of firepower is shifting: Despite an increase in overall firepower, big pharma's share, when compared to big biotech and specialty pharma, has fallen significantly from 85% in 2006 to 75% in 2012 and 70% in 2013. In addition, as valuations of big biotech and specialty pharma companies outpace those of big pharma, the relative firepower of big pharma (i.e., adjusted for higher target prices) has actually declined by more than 20% over the last year. These shifts should heighten the competition for deals in 2014. Big biotech and specialty pharma have already proven to be significant competitors for assets, with these sectors accounting for more than 80% of M&A activity by announced deal values in 2013.
  • Implications for 2014 and beyond 
    The shifting balance of firepower report identifies several factors and considerations likely to affect M&A in 2014 and beyond:

  • Acquisitions to hedge pipeline disappointments seen as likely: Among the likely big pharma acquirers in 2014 will be those with growth gaps who decide to hedge potential disappointments in product launches and R&D.
  • Divestitures to pursue growth targets may be seen: Given the rise in target valuations, some big pharma companies may turn to divestitures to boost firepower in 2014. EY estimates that approximately 12 divestitures by big pharma - principally from non-core businesses - could be worth up to US$100 billion in incremental firepower that could be redeployed for M&A.
  • Use it or lose it?: For companies whose firepower is expected to remain the same or shrink, "use it or lose it" may become the focus - driving a surge in M&A activity.
  • "With both de
    '/>"/>

    SOURCE EY
    Copyright©2012 PR Newswire.
    All rights reserved

    Page: 1 2 3 4

    Related medicine technology :

    1. Virtify Announces Second Webinar on Regulatory Information Management Strategies for Small and Mid-Sized Pharmas
    2. Innovation Rolls Out New PharmASSIST Dispenser Model 4 with Medication Self Calibration Capability
    3. AstraZeneca Neuroscience partners with ePharmaSolutions to optimize Clinical Trial Management
    4. PharmaSphere: Early-Stage Technology Transfer Collaborations - Enabling Platform Technologies & Deal Synergies between Academia and the Pharmaceutical Industry
    5. ePharmaSolutions Wins Major Award for Life Sciences Industry Innovation
    6. In Q1 Public Biopharmas Shift Fundraising into Overdrive
    7. Cumberland Pharmaceuticals And PT. SOHO Industri Pharmasi enter Into Exclusive Licensing Agreement For Caldolor In Indonesia
    8. ePharmaSolutions Launches an Innovative Patient Recruitment Application for Windows 8
    9. Partnerships, Licensing, Investments and M&A Deals and Trends for May 2013 in Pharmaceuticals
    10. Medical Equipment Monthly Deals Analysis: February 2013 - M&A and Investment Trends
    11. Medical Equipment Annual Deals Analysis: M&A and Investments Trends - 2012
    Post Your Comments:
    *Name:
    *Comment:
    *Email:
    (Date:7/11/2014)... , July 11, 2014 Neurelis, Inc. ("Neurelis") ... to end the option held by Biotie to purchase ... development of NRL-1 (intranasal diazepam) for pediatric and adult ... Over the past year, Biotie has advanced the development ... for the pivotal clinical work required for NDA submission ...
    (Date:7/10/2014)... NEWPORT NEWS, Virginia , 11. ... führender Hersteller von Kameras für die ... Brust (MBI/BSGI), hat heute die CE-Zulassung ... Mit dem CE-Zeichen kann Dilon das ... seinen Vertriebsbereich auf den Großteil der ...
    (Date:7/10/2014)... Calif. , July 10, 2014  Breg, ... and services, has launched the FreeRunner™ knee brace ... who suffer from patella mal-tracking return to active ... differently than other braces, providing support when patients ... normally when they don,t. Patellofemoral issues ...
    Breaking Medicine Technology:Neurelis Regains Rights to Intranasal Diazepam Program 2Neurelis Regains Rights to Intranasal Diazepam Program 3Dilon erhält CE-Zulassung für sein Navigator-Gamma-Sondensystem 2Breg Introduces Knee Brace to Help Runners with Patellofemoral Pain Syndrome 2
    ... 14, 2012  The Consumer Healthcare Products Association (CHPA) ... into law House Bill 2263—anti-meth legislation authored by ... 23rd state to adopt real-time, stop-sale technology known ... The proven system—in a process similar ...
    ... SCHLIEREN-ZURICH, Switzerland, May 14, 2012 The ALS ... it has entered into collaboration with Neurotune ... Neuron or Lou Gehrig,s disease). (Photo: ... "Maintaining the health of motor neurons ...
    Cached Medicine Technology:CHPA Applauds Arizona's Adoption Of HB 2263 2The ALS Therapy Development Institute Partners with Neurotune to Investigate Potential Treatments for Motor Neuron Disease 2The ALS Therapy Development Institute Partners with Neurotune to Investigate Potential Treatments for Motor Neuron Disease 3
    (Date:7/13/2014)... identifies a novel genetic and molecular pathway in ... up potential new therapeutic strategies for an enigmatic ... a chronic inflammatory disorder of the esophagus. The ... foods and an over-accumulation in the esophagus of ... body,s immune system). EoE can cause a variety ...
    (Date:7/13/2014)... July 13, 2014 Victorian Hotel has ... promoting the rental of bikes for its "Cycle the ... Victorian Hotel to tour the area using a rental ... Bicycle enthusiasts love to call Vancouver home, as it ... cycle travel and picturesque journeys through the countryside. Vancouver ...
    (Date:7/13/2014)... Advanced boilers are preferred over conventional ... fossil fuels, produce high-capacity power, emit fewer pollutants, ... warming and climate change concerns, many countries have ... emissions and pollutants coming from fossilfuel-based power plants.North ... advance boilers market., The global power rental market ...
    (Date:7/13/2014)... July 13, 2014 A Massachusetts couple ... the cancer risks associated with power morcellators ( http://www.gynecaremorcellatorlawsuit.com/ ... story to federal regulators, as they presented poignant testimony ... & Drug Administration (FDA) advisory panel meeting convened to ... to the Rochester Democrat and Chronicle, Dr. Hooman Noorchashm ...
    (Date:7/13/2014)... New York, New York (PRWEB) July 13, 2014 ... mesh lawsuits ( http://www.transvaginalmeshlawsuithelp.com/ ) filed against ... the litigation’s second bellwether trial, which is expected to ... Control Order issued in the U.S. District Court, Southern ... Pretrial Conference will be held on August 7, 2014 ...
    Breaking Medicine News(10 mins):Health News:Study finds cause of mysterious food allergy, suggests new treatment strategy 2Health News:Study finds cause of mysterious food allergy, suggests new treatment strategy 3Health News:Victorian Hotel Creates Excitement by Adding "Cycle the City" Bike Rentals for Its Vancouver Hotel Rooms 2Health News:North America Advanced Boilers Market is Expected to Reach $518.7billion by 2019 - New Report by MicroMarket Monitor 2Health News:North America Advanced Boilers Market is Expected to Reach $518.7billion by 2019 - New Report by MicroMarket Monitor 3Health News:Couple Who Brought Attention to Morcellator Cancer Risks Testify on Second Day of FDA Advisory Panel Meeting, Bernstein Liebhard LLP Reports 2Health News:Couple Who Brought Attention to Morcellator Cancer Risks Testify on Second Day of FDA Advisory Panel Meeting, Bernstein Liebhard LLP Reports 3Health News:Couple Who Brought Attention to Morcellator Cancer Risks Testify on Second Day of FDA Advisory Panel Meeting, Bernstein Liebhard LLP Reports 4Health News:Ethicon Vaginal Mesh Lawsuits Move Forward, As Federal Court Schedules Pretrial Conference for Second Bellwether Case, Bernstein Liebhard LLP Reports 2Health News:Ethicon Vaginal Mesh Lawsuits Move Forward, As Federal Court Schedules Pretrial Conference for Second Bellwether Case, Bernstein Liebhard LLP Reports 3Health News:Ethicon Vaginal Mesh Lawsuits Move Forward, As Federal Court Schedules Pretrial Conference for Second Bellwether Case, Bernstein Liebhard LLP Reports 4
    ... , THURSDAY, April 5 (HealthDay News) -- For people ... be just as good as having the appendix removed, ... hundreds of patients to determine that treatment with antibiotics ... been the so-called "gold standard" of care for an ...
    ... (HealthDay News) -- Patients with digestive disorders such ... levels of radiation from diagnostic imaging tests, a new ... patients with gastrointestinal disorders between 1999 and 2009, ... diagnostic imaging tests such as computed tomography (CT) imaging. ...
    ... Doheny HealthDay Reporter , THURSDAY, April 5 (HealthDay ... mammogram may be at higher long-term risk of developing breast ... a new Danish study. However, the link between false-positive ... among women who had been screened from the early 2000s ...
    ... common among long-term survivors of acute lung injury ... a telephone-based test battery, according to a new ... as an important outcome among survivors of critical ... has not been assessed in a multi-center trial, ...
    ... , ,Airport security screening has increased substantially during the ... rise. According to the American Academy of Orthopaedic ... (THR) were performed in the United States. A ... Security Checkpoints: How Has Heightened Security Affected Patients," ...
    ... 5, 2012 - Old houses and vacant lots may not look ... is better than gold. Excavations over the years can create ... if dirt and debris ended up mixed in a blender then ... one scientist and geologist is finding some of the city,s abandoned ...
    Cached Medicine News:Health News:Study Finds Antibiotics Best for Appendicitis 2Health News:Study Finds Antibiotics Best for Appendicitis 3Health News:Diagnostic Scans Tied to Radiation Risk for Gastro Patients 2Health News:False-Positive Mammogram Results May Turn Out Not to Be: Study 2Health News:False-Positive Mammogram Results May Turn Out Not to Be: Study 3Health News:Long-term neuropsychological impairment is common in acute lung injury survivors 2Health News:Clinical news alert from the American Academy of Orthopaedic Surgeons 2Health News:History of abandoned urban sites found stored in soil 2
    ... reference laboratory and a worldwide leader in ... an extensive test menu of highly complex ... anatomic pathology. Owned by the University of ... half of the nation's university teaching hospitals ...
    ... national reference laboratory and a worldwide leader ... offers an extensive test menu of highly ... and anatomic pathology. Owned by the University ... than half of the nation's university teaching ...
    ... a national reference laboratory and a worldwide ... ARUP offers an extensive test menu of ... clinical and anatomic pathology. Owned by the ... more than half of the nation's university ...
    ... reference laboratory and a worldwide leader in ... an extensive test menu of highly complex ... anatomic pathology. Owned by the University of ... half of the nation's university teaching hospitals ...
    Medicine Products: