Pharma M&A in 2011 surges back to pre-recession levels

As the global pharmaceutical industry faces a third (35%) of its 20 best-selling prescription medicines’ patents expiring in the next two years in the USA - with half already off patent - the value of mergers and acquisitions (M&A) in the sector surged in 2011 to $224 billion, the highest level recorded since 2007 according to research*conducted by international law firm Freshfields Bruckhaus Deringer.

Global deal values in 2011 were up 18% on 2010 though still substantially behind the mega-merger boom of 2006, when deal values reached $303 billion globally, says the report, which complements The Pharma Letter’s own survey of M&A activity last year, that noted a surge in the number of deals but few that exceeded the billion dollar level (TPL January 11).

Global pharma players continue to penetrate the emerging markets, with the value of pharma deals involving Brazilian, Indian, Chinese and Russian (BRIC) companies outpacing the growth of global M&A activity in these regions over the last five years, the Freshfields report notes.