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Mergers and Acquisitions, Healthcare

Over $150 Billion – Record Levels of Healthcare M&A

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US M&A levels are up across the board. According to Thomson Reuters, 2,777 deals representing $476 billion in value have been announced so far this year (up 78% from the same period last year), with $153.5 billion coming from healthcare. Approximately 71% of that volume is in the pharmaceutical sector, followed by health care equipment and technology.

The value of worldwide M&A so far this year has topped $1 trillion, passing that level for only the third time this early in the year since records began in 1980. US Private equity activity is up 21% compared with the same period last year, while strategic M&A is up over 100%.

In the US, Botox maker Allergan is subject to a $47 billion takeover offer from Valeant Pharmaceuticals, and Eli Lilly announced that it would buy Novartis’s animal health division for $5.4 billion in cash. Forest Laboratories Inc said it would buy Furiex Pharmaceuticals Inc for up to $1.46 billion, including milestone payments to access Furiex’s promising treatment for irritable bowel syndrome.

Other significant deals announced so far this year include Zimmer Holdings’ acquisition of Biomet, in a deal valued at about $13.35 billion and GSK’s multiple asset swap with Novartis worth more than $20 billion. Separately, Novartis agreed to sell its animal health business to Eli Lilly for $5.4 billion.