Pharma M&A momentum expected to continue into 2014, says PwC

Pharmaceutical and life sciences (PLS) merger and acquisition (M&A) volume and value increased in the fourth quarter of 2013, finishing the year for deal activity on a high note, according to Pharmaceutical and Life Sciences Deals Insights Quarterly, a quarterly analysis of M&A trends and outlook for the PLS sector issued today by PricewaterhouseCoopers (PwC).

“We expect the momentum of M&A activity in the fourth quarter, driven by macroeconomic stability and growth in key markets, to continue into 2014 as acquirers remain active in the market. Working with clients on their M&A strategies, we’re seeing a continued focus on successful execution and PLS companies are continuing to use earn-outs and other deal tools to bridge value gaps, share risk, and complete deals,” said Dimitri Drone, US pharmaceutical and life sciences deals leader, at PwC.

There were 31 PLS transactions in the fourth quarter of 2013, a 24% increase compared to 25 deals in the third quarter of 2013. Total deal value also jumped more than 100% to $37.1 billion in the fourth quarter compared to around$18 billion in both the third quarter of 2013 and the fourth quarter of 2012 (see also The Pharma Letter’s latest survey of pharma M&A deals).