Biopharma M&A in 2018 - HBM analysis & report

The HBM Pharma/Biotech M&A Report covers all completed trade sales of US and European biotechnology and pharma (i.e. biopharma) companies with a therapeutic focus (Rx incl. generics as well as OTC). For 2014-2018, additional data for asset deals and transactions outside of the US and Europe is provided.

Key Findings

• Worldwide biopharma M&A volume of completed deals (including the $59 billion Shire/Takeda deal) reached $149.3 billion in 2018 (up from $75.9 billion in 2017). These numbers include contingent payments and as well as asset deals and sale of business units. Shareholders of Shire/Takeda approved the transaction before year end 2018. The deal officially closed in early 2019.
• Besides the widely commented Shire/Takeda deal, there were only two further transactions over $10 billion: GlaxoSmithKline bought out Novartis’ stake in their consumer health joint venture for $13 billion and Sanofi acquired US-listed hemophilia company Bioverativ for $11.6 billion.
• US deal volume (based on location of target company/business) in 2018 rose to $48.7 billion (up from around $30 billion in 2017).
• In Europe the Shire/Takeda deal lifted deal volume to $97.3 billion, a number that is roughly twice as high as in 2017.
• Average premiums paid for public biopharma companies rose to over 70%.
• As in the years 2016 and 2017, M&A transaction volume outside of the US and Europe was modest in 2018 with a total deal value of only $3.3 billion.
• Private deal making in 2018 was dominated by trade sales of innovation-driven and VC-backed companies, both in the US and in Europe.
• Return multiples to VC investors from M&A stayed at very high levels in 2018 with average multiples on upfront proceeds alone now surpassing 5x.

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