Business Wire

Vantage Half-Year Review 2019: Pharma and medtech mega-deals mask drop in M&A activity

Share

By value alone, Bristol-Myers Squibb’s $74bn pending purchase of Celgene and Abbvie’s $63bn acquisition of Allergan position 2019 as a record year for pharma M&A. Similarly, Verily’s $1bn round of funding was the largest ever for a medtech company. Yet both sectors saw a substantial slowdown in the total number of M&A deals announced, and pharma doubled down on this trend with a drop in licensing activity.

Buoyant stock markets are one reason; with nearly $2bn raised by biotech flotations in Q2, investor enthusiasm continues to attract younger drug developers away from traditional M&A and partnerships. And while only eight medtech companies went public during the first half of the year, collectively they raised $1.3bn.

Venture financing also continued to provide a ready source of cash. While biotech funding dipped below 2018’s record-breaking level, the $3bn raised in Q2 indicates there is capital available. Medtech financing exceeded $2b in Q1 for the third year in a row, although the $1b raised in Q2 is lower than prior years.

“We’re seeing strong interest in biopharma and medtech companies from public and private investors, though certain areas are benefitting more than others,” said report author Amy Brown. “This likely affects the volume of acquisition and licensing deals. Barring a dramatic decline on the financial markets, it’s hard to see this trend shifting, although the potential for new drug pricing policy could make investors more jittery in the coming months.”

Additional Highlights from H1 2019:

  • Roche saw a 13% increase in share price – the strongest performance among big pharma – defying expectations about the biosimilars threat; AbbVie and Bristol-Myers Squibb were the lowest performers in this segment.
  • FDA approvals for novel drugs may be heading for a slowdown, with only 18 approvals in H1 and a total of 45 projected for 2019 – well below the 62 drugs approved in 2018.
  • The Dow Jones U.S. Medical Equipment Index was up 20% at the end of Q2, with other major medtech indices also up by double-digit percentages – a healthy recovery from 2018’s performance.

Download a complimentary copy of the Vantage “Pharma, Biotech & Medtech Half-Year Review 2019” at https://www.evaluate.com/2019HalfYearReview. Vantage is the independent editorial arm of Evaluate Ltd.

About Evaluate Ltd.

Evaluate provides trusted commercial intelligence for the pharmaceutical and medical device industries. Our EvaluatePharma® and EvaluatePharma Vision online subscription services provide a seamless view of the past, present and future of the global pharmaceutical market in a single, standardised platform.

Vantage – our award-winning, independent editorial team – provides thought-provoking news and insights into the current and future developments in the industry.

Evaluate has been a partner to industry-leading organisations for over 20 years. For more information on how we give our clients the time and understanding to drive better decisions, visit www.evaluate.com.

Follow us on Twitter: @EvaluatePharma, @Vantageanalysis

Contact information

Media Contact:
Evaluate and Vantage
Jennifer Dinkel
+1 617-936-7783
jennifer.dinkel@evaluate.com

About Business Wire

For more than 50 years, Business Wire has been the global leader in press release distribution and regulatory disclosure.

Subscribe to releases from Business Wire

Subscribe to all the latest releases from Business Wire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from Business Wire

Takeda Recognized in the 2019 Dow Jones Sustainability World Index19.9.2019 08:00:00 EESTPress release

Takeda Pharmaceutical Company Limited (“Takeda”) (TOKYO:4502/NYSE:TAK) today announced that it has been named in the 2019 Dow Jones Sustainability World Index, achieving more than double the average overall industry score. In addition, Takeda was named for the 10th consecutive year in the Dow Jones Sustainability Asia Pacific Index. The Dow Jones Sustainability Indices are an independent indication of the Company’s strong corporate environmental, social and governance (ESG) performance. “Takeda’s commitment to creating and preserving value through environmental, social and governance initiatives is an important part of our role as a patient-centric and values-based global biopharmaceutical leader,” said Christophe Weber, President and CEO. “We understand the significance of sustainable business practices, and we are proud to be recognized for Takeda’s global impact and long-term commitment to building a brighter future.” Takeda achieved more than double the average pharmaceutical indus

INSHUR Strengthens Its Senior Team With the Appointment of Simon Logan From Uber18.9.2019 23:36:00 EESTPress release

INSHUR, the first mobile app to offer Uber drivers insurance in just three minutes, has strengthened its relationship with the ride-sharing app by appointing its former Legal Director of Insurance, EMEA, Simon Logan as VP of Commercial & Legal. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190918005972/en/ Simon Logan - VP Commercial & Legal (Photo: Business Wire) Simon's primary responsibility at Uber was providing legal and commercial counsel throughout the 40 countries Uber is active in the EMEA region. Before this, he was Head of Legal at RSA Insurance Group in London. INSHUR is one of the fastest-growing “insurtechs” and is backed by Munich Re Digital Partners (MRDP). The transatlantic team, based in New York and Brighton, UK, has built a proprietary technology platform to provide insurance to professional drivers globally. INSHUR sold $24M of premium in the first 12 months of operation in 2018 in New York alone and ha

CORRECTING and REPLACING Three Hospital Systems Earn Five-Star Award from Patient Safety Movement Foundation18.9.2019 23:29:00 EESTPress release

In the release dated Sept. 17, 2019, the word "ranking" has been replaced with "award" throughout the release. The corrected release reads: THREE HOSPITAL SYSTEMS EARN FIVE-STAR AWARD FROM PATIENT SAFETY MOVEMENT FOUNDATION Award demonstrates organizations’ commitment to eliminating preventable patient deaths On the first World Patient Safety Day, the Patient Safety Movement Foundation (PSMF) announces that it has awarded Dignity Health, MedStar Health and the UPMC with its five-star award for making commitments in alignment with PSMF’s 18 evidence-based Actionable Patient Safety Solutions (APSS). APSS include solutions designed to help hospitals eliminate preventable patient deaths. Preventable deaths are the third leading cause of death in the U.S. “More than 200,000 patients die from preventable hospital errors in the U.S., and 4.8 million across the globe. Those numbers are simply not acceptable but also unthinkable,” said Dr. David Mayer, PSMF CEO. “Our 5-Star award acknowledges t

IFF to Present at Bernstein Strategic Decisions Conference September 2518.9.2019 23:15:00 EESTPress release

Regulatory News: IFF (NYSE: IFF) (Euronext Paris: IFF) (TASE: IFF), a leading innovator of taste, scent, and nutrition & ingredients today announced that the Company’s management will speak at the Bernstein Strategic Decisions Conference in London on Wednesday, Sept 25, 2019 at 10:30 AM ET. Investors may access the live webcast and accompanying slide presentation on the Company's website at ir.iff.com. For those unable to listen to the live webcast, a recorded version will be made available for replay. Welcome to IFF At IFF (NYSE:IFF) (Euronext Paris: IFF) (TASE: IFF), we’re using Uncommon Sense to create what the world needs. As a collective of unconventional thinkers and creators, we put science and artistry to work to create unique and unexpected scents, tastes, experiences and ingredients for the products our world craves. Learn more at iff.com, Twitter , Facebook, Instagram, and LinkedIn. View source version on businesswire.com: https://www.businesswire.com/news/home/2019091800548

Ceravision Ltd: Ground Breaking Results for New Horticulture Light Technology18.9.2019 19:14:00 EESTPress release

Ceravision Limited, inventor of a new and unique scientific approach to horticulture lighting, today announced the results of trials undertaken over the last six months with a group of leading horticulture businesses. Results from independently conducted trials with Bridge Farm Group on licenced industrial hemp have demonstrated an increase in yield and potency of 40% compared to other lighting solutions. Trials elsewhere on salad crops have also revealed benefits - faster growth, fewer pesticides and less waste. Exploiting its innovative plasma light technology, Ceravision’s new and patented approach to horticultural lighting is based on the ability to produce unique light spectra with unparalleled levels of UV-A and UV-B. This UV spectral range is crucial for indoor cultivation. UV can benefit plants as it enhances the production of the secondary metabolites that act as ‘sunscreens’ and boost aroma, flavonoids, terpenes, colour, nutritional and medicinal values. UV can also improve d

Larger, healthier, more plentiful — Study proves House Wellness Foods’ Feed LP20® improves stock at the cellular level.18.9.2019 18:28:00 EESTPress release

Eons ago, the progress of humankind was thrust forward with the development of farming. Today that progress is challenged simultaneously by climatic and socioeconomic forces, and the future hangs in the balance. Our fundamental need is to nourish the world, and the means to achieve that is increased efficiency in agriculture and aquaculture. To this end, House Wellness Foods has released yet another groundbreaking clinical study showing that its pioneering, immunobiotic-based Feed LP20®, with the primary ingredient, heat-killed Lactobacillus plantarum L-137 (HK L-137), demonstrably increases the farming output, size, and health of genetically-improved farmed tilapia (GIFT), a food with endless potential for feeding diverse populations across the globe. The conclusions of this study could have world-altering impact on the field of aquaculture, and the company will be sharing these at Aquaculture Europe, taking place in Berlin, October 7-10, where one of the study’s directors, Mahmoud A.

In our pressroom you can read all our latest releases, find our press contacts, images, documents and other relevant information about us.

Visit our pressroom