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Pharma M&A Deal Volume Smallest In Years

August 1st, 2019

half year deals

Vantage is out with a half-year review of developments and trends in pharma, medtech and biotech. The headline is that M&A activity has slowed despite two mega-deals worth a combined $137 billion.

Other deals pushed the total value of takeovers in the first half of the year to $173 billion. The report describes this as " an eye-watering sum that already beats the last three full years on total deal spend."

The dollar amounts belie a slowdown -- and a substantial one, according to the report -- in the volume of deals. The slowdown hit hard in the second quarter with only 22 deals closed. It's the smallest volume in at least a decade, says the report.

Meanwhile, novel drug approvals have also fallen. The 18 first-to-market products approved by the FDA are, as the report writers describe it, "a disappointing run rate compared with the last five years." However, they caution that the numbers shouldn't be taken as a sign of any tightening by the FDA. The approvals so far, and the 27 drugs pending approval, represent an overall dip, but "not the kind... that should cause alarm."

Tags: M&A

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