According to Deal Search Online, an Irving Levin Associates M&A
database $57.5 billion was committed to biotechnology M&A in 2010, a 21%
increase from last year despite there being 78 fewer reported deals compared to
2009. This is the second highest amount of money committed to the biotechnology
sector over the past decade; in 2008, nearly $94 billion was committed. The
biotechnology industry posted a total of 115 M&A deals in 2010, a 40%
decrease from 2009’s decade high 193 deals. However, the average price per deal
has risen indicating that buyers are more confident in committing more capital
to deal making.
The five largest biotechnology M&A transactions reported
in 2010 are listed below.
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1. Sanofi-Aventis SA acquired Genzyme Corp. for $18.5 |
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2. Astellas Pharma, Inc. acquired OSI Pharmaceuticals, |
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3. Grifols, SA acquired Talecris Biotherapeutics Holdings |
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4. Celgene Corp acquired Abraxis BioScience, Inc. for |
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5. Johnson & Johnson Inc. acquired Crucell NV |
The Sanofi-Aventis SA takeover of Genzyme Corp. for $18.5
billion announced in the third quarter of 2010 alone was larger than the
M&A totals in 2002, 2003, and 2004. This mega deal was also the second
largest takeover of the past decade, behind Roche Holding AG’s $46.8 billion
acquisition of the remaining interest in Greentech in 2008.
Over the past decade there have been a total of 1,234
reported biotech M&A deals, which generated a total of $347.5 billion in
transactions in the ten-year period ended December 31, 2010, according to data
provided by Deal Search Online, an Irving Levin Associates M&A database.
The number of deals reported and the amount of dollars committed to the
biotechnology M&A market has gradually increased over the last decade. The
increase in deal and dollar volume over the past few years has been driven by
big pharmaceutical companies which are in search of new blockbuster drugs to
replace existing drugs and their revenue, when they go off patent over the
coming years.
