The IQVIA Pharma Deals Half-Year Review of 2019 provides an insightful overview of deal activity in the first half of 2019, as well as an outlook for the remainder of 2019. Key information provided includes the following:
- Top M&A and partnership deals of H1 2019
- Deal activity rankings of the top pharmaceutical companies
- Therapeutic area and development phase deal activity
- Deal value analysis of M&A, licensing and R&D deals
- Big-ticket M&A returned to the biopharmaceutical sector, driving an upturn in M&A deal values
- Bucking the downward trend seen in previous years, the number of collaborative R&D agreements was up in H1 2019 with deals becoming increasingly broad
While the overall level of deal activity in the life sciences sector fell from H1 2018 to H1 2019, deep-pocketed pharmaceutical companies drove an upturn in deal values by paying premium sums to address concerns about their growth prospects. Several major pharmaceutical companies used M&A in H1 2019 to replenish weak pipelines and offset revenue losses from patent expiries on key products. In aggregate, life science companies pledged to spend US$223 B on M&A in the first 6 months of 2019, a significant increase on the same period the previous year, although the number of deals signed was down 9%. The multibillion-dollar acquisitions of Celgene and Allergan by Bristol-Myers Squibb (BMS) and AbbVie, respectively, accounted for more than 60% of this total. Biotech companies were still able to access venture funding and the public markets with relative ease, however, putting them in a strong position at the negotiating table.
Novartis took the title of the most prolific dealmaker in H1 2019 by overtaking Johnson & Johnson (J&J). The level of licensing activity fell by a double-digit percentage from H1 2018 to H1 2019, outpacing the decline in overall deal activity. Despite this, licensing deal values rose significantly over this period in terms of all metrics analysed.