Biotech And Specialty Pharma’s M&A Power Gains On Big Pharma, EY Report
This article was originally published in The Pink Sheet Daily
Big pharma continues to have the most buying power, according to EY’s annual M&A report, but the buying power of big biotech and specialty pharma grew significantly more.
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The year 2014 was the biggest for pharma M&A in recent history, though it may be remembered equally for sagas and upsets that never materialized into finalized deals. Actavis, in the end, was the most aggressive acquirer, buying Forest and Allergan for a total of $89.3 billion in the two most expensive deals of the year.
Actavis’ purchase of Warner Chilcott will lower the former’s overall tax rate significantly, expand its specialty pharma business to 25% of total revenues, and provide global critical mass – all necessary responses to a future that includes fewer opportunities for small molecule generics and greater pricing pressures.
Two companies in the biopharma space began trading publicly this week, one to pay off debt, the other to fund an early-stage pipeline.