RE:RE:RE:RE:RE:RE:RE:PwC sees continuation of US$ 5 to 15 Billion Bio M&A Deals In a break from the pattern of global deal volumes, average deal premiums indicate that there’s overall more interest in pharma deal activity than 10 years ago.
These premiums reflect the average amount paid above market value for shares being acquired in a transaction. Since buyers often use premiums to reach a deal agreement and fend off competition, average premiums may signal the attractiveness of targets in the pharma industry.
Similarly, for the pharma–biotech subset, average premiums also broadly increased from 2014 (46.7%) to 2023 (59.8%), with 2023 having the third-highest average premium in the decade—only 2016 (64.7%) and 2022 (70.4%) were higher. The high prices paid for pharma–biotech targets suggest that companies’ interest in doing deals in this industry has been strong.