Pharma and biotech sector leads the way in global M&A deals

The pharma, medical and biotech industry is the most active sector for mergers and acquisitions so far this year, with deals valued at $252.5 billion, according to Mergermarket.

The sector represented a 16.9% market share in global M&A, which stands at $1,494 billion, up 48.6% compared to the first half of 2013 ($1,005 billion), and up 23.5% compared to the second half of 2013. In pharma, medical and biotech, deal value is 48.2% above the whole of 2013’s value, is a result of four of the 10 highest valued global deals targeting this sector – these four deals account for a 61.3% share in the sector’s total activity.

Pharma, medical and biotech companies were the most targeted during the first six months of 2014 and the value already exceeds the annual values of every other year since 2006. Deals valued at $84.8 billion currently have a 19.9% share in total European M&A, a considerable increase from a 5.4% share this time last year. Meanwhile US bidders accounted for a 71.8% share of European pharma, medical and biotech M&A activity with deals being announced for tax benefits such as the $45.9 billion acquisition of Ireland’s Covidien by Medtronic.