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  • 14 July 2015
  • blog

Start-up landscape and M&As get interesting


The year 2014 has been a good year for Mergers and Acquisitions (M&As) in the lifesciences sector. Further, the start-ups too have evinces a lot of support and action. This issue of the BioSpectrum Asia captures the mood of the market in the M&A segment as well as the start-up landscape. Though there is an in depth coverage on the same, I am summing up the key developments.

  • Pharmaceutical, medical technology and biotech sector witnessed a record number of M&A deals in 2014. There were 1,215 deals valued at nearly $379.5 billion. 
  • The medical device sector also saw a record number of 96 M&As registering 18.5 percent growth from that in 2013. The largest deal of 2014 was Medtronic's $42.9 billion acquisition of Covidien, creating the world's largest medical device company. 
  • China emerged as a hot bed of interest for both global as well as domestic pharmaceutical companies. 
  • Frost and Sullivan forecasts that 2015 is expected to see more lucrative M&As in the lifesciences sector that would overshadow the deals of 2014. There would be more Asia-focused mergers and acquisitions.
  • Beginning of 2015 indicated the continuity of the trend that bioscience industry picked in 2014. It includes consolidation of strength, building drug pipeline, shifting focus to emerging market and not underestimating the strength of start-up companies that are proving to be major contributors of strength building. In the first quarter of the year itself, M&As in the bioscience sector have touched almost $59.3 billion, a 94 percent increase over the same period a year ago, states Reuters.
  • The biggest deal of 2015 so far has been AbbVie's acquisition of Pharmacyclics valued at $21 billion.
  • E&Y predicts 2015 to be a year of robust and highly competitive M&As in the biopharma industry, marked by a continued rise in deal premiums. This will be challenging, especially for some big pharma firms still in need of acquisitions to meet market growth expectations. There is now a scarcity of targets that can offer a meaningful impact on closing revenue shortfalls

This is one area that will be very actively discussed at the 2015 BIO International Convention that will take place June 15­18, 2015 at the Pennsylvania Convention Center in Philadelphia, Pennsylvania. The Super Sessions have been unveiled and will feature the perspectives on major trends that will impact the future of global healthcare.

Some of the 2015 Super Sessions include: Ensuring Patient Access to Innovative Medicines; M&A and Capital Allocation: Everything Old is New Again; Investment Incentives to Combat Antimicrobial Resistance (AMR); Accelerating Innovation in the 21st Century; Riding the Bull Market: What's in Store for Biotech Dealmakers in 2015? How Companies Build Successful Therapeutic Franchises from the Ground Up. These are just some of the topics. This year's BIO Convention is expected to throw up very interesting insights and also incite better sentiments of the industry.

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