M&A update – Healthcare

Mid-market pharma dominates M&A activity

Globally, it’s been a busy year for pharma merger and acquisition (M&A) activity, with four more $1bn plus deals compared to this time last year. Drivers include the second “patent cliff” ($251bn of sales are forecast to be at risk between 2018 and 2024), and the continuing impact of the 2018 US Tax Cuts and Jobs Act, which has provided a predicted $160bn of cash for industry multinationals to deploy. M&A on a local scale has been notable too, although deals have focused on the mid-market and private equity (PE) investment has been an increasing driver of activity, either directly or from PE-backed businesses consolidating niches.