Investment in "pharmerging" markets at highest-ever level, according to Freshfields

While global merger and acquisition (M&A) activity involving pharmaceutical companies has fallen to $146 billion so far in 2012 compared to $225 billion last year, investment in pharmaceutical companies in the world’s key growth markets is at its highest level ever, according to an analysis* by international law firm Freshfields Bruckhaus Deringer that was published mid-December.

Expenditure in the world’s key growth markets by overseas acquirers of pharmaceutical companies has peaked at $3.5 billion so far this year, 95% up on the previous year ($1.8 billion). Total investment in pharmaceuticals in the world’s key growth markets, by both overseas and domestic acquirers, stands at $20 billion. It accounts for more than a 10th (14%) of the total value of global M&A pharma deals ($146 billion) so far in 2012. Investment in these markets has increased by two thirds (60%) on the total recorded in 2011 ($12bn).

Singapore is the most acquisitive nation of pharmaceutical companies in the emerging markets with outbound deals totalling $956.1 million in 2012, followed by the USA ($724.0 million) and Chile ($562.0 million). The UK invested $24.1 million in the emerging markets. Despite the rise in investment in emerging markets, the number of deals is still relatively low in 2012 at 46.