Europe leads surge in Pharma M&A deal values

A surge in mergers and acquisitions deal values in the global pharmaceutical and health care sectors in 2006 has continued into the first half of 2007, says a new report from PricewaterhouseCoopers Corporate Finance.

Deal values in the pharmaceutical, medical devices and health care services sectors during the first half of 2007 reached $140.0 billion, on course to exceed the $209.0 billion in 2006 and already almost level with 2005's total of $152.0 billion. While M&A volumes have remained broadly consistent since 2004, the uplift in value has been largely caused by a few significant transactions in 2006 and also in the first half of this year. In 2006, the top 10 accords accounted for nearly $80.0 billion in value, compared with just under $40.0 billion for 2005.

The largest deal completed last year was Bayer's $22.5 billion acquisition of fellow German group Schering AG, followed by Johnson & Johnson's $16.6 billion purchase of Pfizer Consumer Healthcare. The two headline accords this year have been the $14.6 billion takeover of MedImmune by AstraZeneca and the $14.4 billion buy of Organon Biosciences by Schering-Plough (Marketletters passim), notes PwC.