The first 10 months totalled a massive $367.6bn. Pharmaceuticals in the USA was the biggest source of merger activity with deals worth $271.4bn. 2016 is already predicted to be a big one for merger activity, with deals up from $20.5bn in the same period a year ago.
Here we list the top ten mergers and acquisitions since the beginning of last year:
At the start of February American pharmaceutical giant Abbot agreed to buy Alere Inc. for $5.8bn or $56 a share to become the lead holder in the market for medical tests and diagnostics. Alere which has annual sales of about $2.5bn makes tests for infections such as malaria, HIV, dengue fever and tuberculosis. Abbott stated that at the end of 2015 its diagnostic sales were $4.6bn, a figure which would now exceed the $7bn-a-year mark. Abbott currently has more than 73,000 employees and revenues in 2015 reached $20.405bn.
February, 2016 saw Mylan agree a takeover of Swedish drug maker Meda for $7.2bn. The new company is expected to have 2015 sales of $11.8bn, and the deal also boosts Mylan’s range of branded and generic medications and gives it an additional leg-up in the area of over-the-counter medications that will now achieve sales of around $1bn a year. Mylan had been in pursuit of Meda for a while before the deal closed, having two offers rejected in 2014 that were valued at $6.7bn. Mylan is a global generic and specialty pharmaceutical company registered in the Netherlands with headquarters in the UK. It currently provides more than 30,000 pharmaceutical jobs.
In August, 2015, American biotechnology company Celgene acquired Receptos for $7.2bn and its phase III autoimmune treatment for ulcerative colitis and multiple sclerosis. If all goes to plan the drug could end up bringing in peak sales as high as $6bn. Celgene was founded in 1986 and currently has more than 4,100 employees. In 2015 the company achieved a 21% year-on-year growth in product sales reaching $9.2bn.
Endo International, headquartered in Ireland and the USA, is a global specialty pharmaceutical company employing more than 6,200 people. In September last year, it completed its buyout of Par Pharmaceutical in a deal worth $8.1bn. The acquisition firmly establishes Endo as one of the world’s fastest growing and notable generics businesses and will help the company to position itself for strong growth in the years to come.
6. Alexion Pharmaceuticals-Synageva BioPharma, $8.4bn, 2015
In June, 2015 Connecticut-based Alexion Pharmaceuticals successfully completed its acquisition of Synageva BioPharma for $8.4bn. The acquisition strengthened Alexion’s global leadership in devastating and rare diseases, and created one of the strongest rare disease portfolios in the biotech industry. Alexion was founded in 1992 and employs more than 3,000 people serving 50 countries worldwide.
March, 2015, saw Canadian-based Valeant acquire Salix Pharmaceuticals for $15.8bn, adding to its portfolio of gastroenterology drugs. The $158-per-share deal came after reports that Valeant had been competing with Shire for a takeover of Salix. In addition to the $15.8bn price tag, Valeant would absorb $5bn in debt and the merger would provide $500m a year in cost-saving opportunities and cut the tax paid on Salix revenues which stood at 35%. Valeant currently employs around 17,000 individuals and achieved revenues of $10.5bn in 2015.
US-based pharmaceutical giant Pfizer agreed to buy Hospira in a $17bn takeover that would expand its portfolio of drugs and add Hospira’s portfolio of sterile injectable treatments and biosimilar drugs to Pfizer’s broad offerings. At the time Hospira had 11 biosimilar molecules in its pipeline, with the market value for biosimilars and sterile injectables set to reach around $90bn by 2020. The deal was expected to provide around $800m a year in cost-savings by 2018. Pfizer achieved revenues of $49bn last year and currently provides more than 78,000pharmaceutical jobs.
In May, 2015, AbbVie closed a deal to buy California-based Pharmacyclics for $21bn. The massive deal would boost AbbVie’s cancer portfolio substantially. AbbVie currently relies heavily on its ageing $10bn-a-year auto inflammatory drug Humira, and 2 years earlier split from its partner Abbott in the hopes of finding large merger deals to fill its sparse drugs pipeline. One of the driving factors for the merger was Pharmacyclics blood cancer drug, Imbruvica, which is expected to achieve worldwide sales of $5.8bn by 2020. AbbVie achieved revenues of $22bn in 2015 and currently employs more than 28,000 people.
2. Shire-Baxalta, $32bn, 2016
In January 2016 Shire finally closed a deal to acquire Baxalta for $32bn after 6 months of negotiations. Shire stated that the new firm would be able to achieve double-digit sales growth to over $20bn by 2020, with about two-thirds of this revenue coming from immunology, neuroscience, haematology, lysosomal storage disorders, gastrointestinal diseases and heredity angioedema. Both companies are predicting around $500m in annual cost-savings within the first 3 years, with the combined tax rate down 7% to 16%.
1. Teva-Allergan Generics, $40.5bn, 2015
July, 2015, saw Israeli firm Teva buy Allergan’s generics unit for a massive $40.5bn in cash and stock. The deal meant that Allergan received $33.75bn in cash and Teva shares valued at $6.75bn, giving it a 10% stake in Teva. Investors had been pressuring Teva to make a major deal as generics erosion meant that the firm could face severe losses from its $4.2bn a year multiple sclerosis drug Copaxone. Teva hopes that the deal with Allergan generics will establish a foundation for long-term sustainable growth and assist in building a strong portfolio of products in both generics and specialty areas. Teva achieved revenues of around $20bn in 2014, and currently employs more than 40,000 individuals.