HBM Pharma/Biotech M&A Report 1. Halbjahr 2012
M&A activity in the pharma/biotech sector continued to be strong during the first half of 2012: 44 trade sales of US, Canadian and European biopharma companies generated an upfront transaction volume of $28.6 billion ($33.6 billion including contingent payments).
As compared to the first half of 2011, deal volume was lower ($53.1 billion in H1 11), but the number of transactions was higher (38 transactions in H1 11). Only one “mega deal” (over $10 billion) was closed during H1 12: The sale of NASDAQ-listed Pharmasset to Gilead for $11.2 billion was one of the highest prices ever paid for a clinical-stage company.
The number of public transactions dropped to 7, whereas a record number of 37 private deals were reported during the period. These transactions included the sale of 17 venture-backed companies and 7 private-equity-financed firms (also a record). The report takes a close look at the acquisitions of these latter, private-equity-backed pharma firms.
During H1 12, the most active buyers were large biotech and medium-sized pharma companies. Large pharma buyers only contributed to about a quarter of deal volume.
The returns from the sale of VC-backed biopharma companies during H1 12 were strong: 6 transactions (out of the 9 deals where return estimates were possible) generated a return to investors of 3x or higher.
More information, including a list of biopharma trade sale transactions from 2005 to June 2012, can be found under www.hbmpartners.com/report