RE:RE:RE:RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A Deals
M&A activity is expected to pick up in 2025: The value of M&A deals in life sciences reached US$163bn in 2023 (deals announced up to the end of October), surpassing the US$135bn figure for 2022; for the pharma segment, the value of M&A activity in 2023 exceeded the same period in 2022 by 35%. Among life sciences suppliers, the value of M&A deals increased by nearly 85% year on year to US$28.3bn.
Pharma’s ‘patent cliff’ requires a more focused proactive approach: between 2022 and 2030, pharma companies will likely lose more than US$236bn in revenue from the anticipated ‘patent cliff’, as 190 drugs (including 69 blockbusters) lose exclusivity. This represents some 46% in sales at risk for the top ten pharma companies over the next decade. Biopharma is therefore looking for innovative assets to fill the gap in their product portfolios, either by increasing R&D spend or through inorganic growth and M&A. They are also reviewing their portfolios to divest lower margin generic products and non-core facilities.
https://www.deloitte.com/uk/en/Industries/life-sciences-health-care/research/life-sciences-mergers-acquisitions-divestitures-and-restructuring.html