Industry Trends Pharma Industry M&A Activity Grew by 17 % in H1 2020: ComprarAcciones
The pharmaceutical sector witnessed a total of 41 deals during H1 2020 but the Q2 2020 deal value total of 3.3 billion dollars was the lowest quarterly total since Q1 2018, according to data published by ComprarAcciones.com.
UK – According to the research data analysed and published by ComprarAcciones.com, merger and acquisition (M&A) deal activity in the pharmaceutical sector rose by 17 % in H1 2020, disregarding the economic toll of the global pandemic.
It saw a total of 41 deals during the period, but the Q2 2020 deal value total of 3.3 billion dollars was the lowest quarterly total since Q1 2018.
According to PWC, the pharma subsector posted a drop of 56 % in deal value from H2 2019 to H1 2020. For the PLS sector as a whole (pharma, biotech and medical devices), the decline in deal value was a massive 87.2 % during the same period.
Pharma and Life Sciences (PLS) M&A Total Deal Value Sank from 272.9 Billion Dollars to 35 Billion Dollars YOY
The total deal value for the pharmaceutical subsector in H1 2019 was 100.1 billion dollars. In contrast, its total deal value in H1 2020 was valued at 7.7 billion dollars.
The PLS sector had a total of 99 deals valued at 35 billion dollars in H1 2020. In H2 2019, the figures were higher, with 129 deals valued at 86.5 billion dollars. H1 2019 was even bigger, with 119 deals valued at a remarkable 272.9 billion dollars.
Meanwhile, for the healthcare industry as a whole, H2 2020 started off with 13 deals valued at 1 billion+ dollars according to S&P Global.
On the other hand, based on a report from Global Data, the global M&A deal value started on a downtrend in Q1 2020. It went from 151.2 billion dollars to 129.9 billion dollars from February to March. Another study from S&P Global shows that the decline carried into Q2 2020, with a 35 % drop in deal volume. Similarly, total transaction value dropped by 40 %, the highest drop since 2015.
Comparing H1 2020 to H2 2019, the total deal volume sank by 32 % year-over-year (YOY) from 10,155 deals to 6,938 according to Merger Market. Deal values sank by 53 %, from 1.9 trillion dollars to 901.6 billion dollars during the same period.
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