Rebound in pharma and healthcare operations: 14% increase in 2020
The volume of mergers and acquisitions in the pharmaceutical and healthcare sector increased by 25% compared to the first half of the year. Excluding the mega-deals, the total value of the deals is slightly below pre-pandemic figures, according to PwC. The number of mergers and acquisitions increased mainly in Asia in the second half of the year
The pharma and healthcare sector increased their attractiveness for capital. Global M&A volume increased in the second half of 2020 to total nearly $97 billion, according to a report from PwC. Activity in the pharma and healthcare sector in the second half was up 25% compared to the first half of the year and was 14% higher compared to 2019 as a whole.
Pharma and healthcare have gone from being a sector of refuge during times of economic downturn or recession to a protagonist. In this period, AstraZeneca acquired the U.S. pharmaceutical company Alexion for $39 billion, Gilead Sciences bought the cancer therapy developer Immunomedics for $21 billion and Siemens Healthineers is in the process of buying the U.S. Varian Medical Systems for $16.4 billion.
If you want to find more details about the pharma and healthcare sector and how companies performed in 2020, download for free the Born2Invest mobile app. Available for both Android and iOS devices, our companion app brings its readers the latest business news in the world, so they can stay informed.
Bristol Myers Squibb acquired the biopharmaceutical company MyoKardia for $13.1 billion
Johnson&Johnson bought the biotech company Momenta Pharma for $6.5 billion. Excluding the mega-deals, the total value of the deals is slightly below pre-pandemic figures, according to PwC. The number of mergers and acquisitions increased mainly in Asia in the second half of the year. Deals in medical devices rose by 35%, in the biotech sector by 75%, and in pharmaceuticals by 36% compared with the first half. In Europe, the Middle East, and Africa, the number of deals fell by 2%, while in the Americas it was down 22%, although the amounts were higher. Interest in Medtech, medical technology, and laboratory companies also increased as a result of the demand generated by the pandemic.
In 2021 there will be a greater number of integration operations between large operators of nursing homes
The combination of strong investor demand, a shortage of available assets and an abundance of liquidity is the perfect recipe that is driving the value of companies in the sector and will continue to do so in 2021, according to the consultancy.
In the pharmaceutical industry, mid-sized biotech companies along with companies specializing in the development and manufacture of medicines for third parties are the most attractive. Also companies related to medical devices, vaccines, therapies and diagnostics related to the fight against COVID-19 and its variants. Regarding the healthcare sector, private clinics and hospitals will lead in consolidation deals, digital healthcare service providers and IT companies will be in focus and there will be an increased number of integration deals between large nursing home operators.
(Featured image by Free-Photos via Pixabay)
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in PlantaDoce, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
The TopRanked.io Weekly Digest: What’s Hot in Affiliate Marketing [Week 12]
Empires come in all shapes and sizes, from small upstart affiliate businesses right through to world-dominating empires like TikTok. And...
Green Technologies: Why Southeast Asia is the New Global Investment Frontier
According to a report by the United Nations Environment Program, annual green funding flows in Southeast Asia have been estimated...
Eniax Signs Cerba, Analiza, and Oftalvist as Clients and Aims for 1M in Sales in 2023
Eniax also works with some medical centers in Spain, such as the HLA Moncloa University Hospital in Madrid, from Grupo...
GreenIT and Copenhagen Infrastructure to Develop Three 2 GW Offshore Wind Farms
GreenIT was established in March 2021 and is dedicated to the development, construction, and operation of plants for the production...
Concrete Investing Launches €4.75 Million Crowdfunding Campaign
Concrete Investing has financed 24 real estate transactions to date in four years of activity, with about €46 million raised,...
Featured1 week ago
Mass Layoffs at the Fintech Company Moonfare
Business5 days ago
UBS Bailout of Credit Suisse Leaves Markets in Doubt and Spanish Banking Sector Suffers Instability
Biotech2 weeks ago
Nowture Launches Two New Health Companies with an Investment of Four Million
Featured2 days ago
Fintech Company Raisin Receives Unicorn Status After New Financial Injection