Pharmaceuticals was the leading subsector in the first half of 2016 with 162 deals worth USD 83.2bn, but by the end of the year it had fallen behind Medical, with Pharmaceuticals seeing 348 deals worth USD 127bn compared to Medical with 926 deals worth USD 133.6bn. That said, science, drug development, distribution, branding, and executive leadership/experience continue to drive these Pharma mergers. For instance, in the largest deal of 2016, Baxalta Inc and Shire Plc created a biotech company focusing on rare diseases and increased its presence in more than 100 countries. Another interesting contributor is the lion’s share of cash held abroad. If legislators are able to broker a deal in the new Congress to repatriate this cash, some observers are expecting companies to use it for more acquisitions along with dividends and share buybacks.
How are science and finance creating synergies among different life science companies?