Tuesday, August 23, 2011

Pharma and biotech deals in 2011 flow steadily

The year of 2011 is on track to to have as many or more Pharma and Biotech deals and transactions for the first time since before the recession began.  So far this year, 31 deals have been struck with a value of $51.6 billion, and 18 of those deals have been worth at least $20 million.

According to a report released earlier this month by HBM Partners AG, "Even though several important M&A transactions were announced in July, it is difficult to provide an outlook on biopharma M&A due to the recent turbulences on the financial markets. If biotech stocks fall further, some public companies could become attractive takeover targets. For venture and private equity investors, trade sales will remain the preferred and possibly the only exit route for the next 6 to 12 months. Cash-strapped companies with ongoing clinical development programs will thus face a buyers' market."

As reported by The Deal Pipeline, while this will be a considerable number of transactions, it will probably not beat the total amount for transactions, which was $177.7 billion in 2009, largely because of Pfizer acquiring Merck.

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