Seven of the 10 largest M&A deals exceeded the value of 1 billion
There is only one word that can sum up the history of the pharmaceutical sector in 2014: megamergers. The total value of these operations has in fact almost reached 40 billion dollars, more than double compared to 2013. A figure that does not include the Medtronic-Covidien 'megamerger', which closed in early 2015.
This is what is noted in the 'MedTech 2014 in Review' report by Ep Vantage, the editorial 'arm' of the market intelligence firm Evaluate Ltd. The number of companies that went public also increased in 2014, with as many as 34 device manufacturers doctors, for example, totaling $2.2 billion in value (more than triple the 2013 total).
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According to the report, 7 of the top 10 global M&A deals have reached the value of over 1 billion dollars. The total amount of venture capital financing in 2014, on the other hand, saw little change, standing at $3.9 billion.
“After the gloomy days of 2013, last year saw the sector enjoy a renaissance especially with regard to mergers – comments Elizabeth Cairns, author of the report – However this is not entirely good news, because the phenomenon is partly driven by increased pressure on drug prices.
The focus on mega-mergers has also shifted attention away from smaller acquisitions, denying investors a short-term source of return.
