Mid Pharma Licensing and M&A Trends, 2011-16

  • ID: 4238680
  • Report
  • Region: Global
  • 68 Pages
  • Datamonitor Healthcare
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The Nine-Company Mid Pharma Cohort was Responsible for Around $200bn in Up-Front Mergers and Acquisitions

FEATURED COMPANIES

  • Allergan
  • Celgene
  • Merck KGaA
  • Shire
  • UCB
  • MORE

Between Q1 2011 and Q3 2016, the nine-company Mid Pharma cohort was responsible for around $200bn in up-front mergers and acquisitions (M&A) value and $10bn in up-front licensing value, driving deal volume and deal value in the biopharmaceutical sector. The total number of alliances peaked in 2014, whereas the up-front value attached to these alliances peaked in 2015. M&A volume has increased every year since 2011, and up-front M&A value peaked in 2015.

The Mid Pharma group signed more than 300 alliance deals, from discovery through to marketed assets, and inked 50 acquisitions during the nearly six-year timeframe. For alliances, the top deal-makers by volume were Merck KGaA and Celgene; in terms of value, Celgene was by far the biggest spender on up-front alliance payments. For M&A, the top buyers were Allergan and Shire (by volume and by value).

Among therapeutic categories, oncology held the top spot in both alliance volume and alliance value. For M&A, there were more acquisitions driven by immunology and inflammation assets than any other therapeutic category. Acquisitions during the period broke multiple records, including the largest-ever biotech acquisition premium and the most money paid for a clinical-stage biotech. However, M&A value was driven by a small handful of large deals in which the target companies’ product portfolios and pipelines were diversified across several therapeutic areas.

The majority of alliances focused on technologies and product candidates in early-stage development (discovery or preclinical stage), whereas those companies most likely to be acquired by Mid Pharma members had lead assets on the market or in Phase II development.

The sources for the deal data used in this report are the publisher's Medtrack and Strategic Transactions.

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FEATURED COMPANIES

  • Allergan
  • Celgene
  • Merck KGaA
  • Shire
  • UCB
  • MORE

1. Executive Summary

2. Mid Pharma Peer Set Overview
Ownership and structure
Geography
Mid Pharma boasts a strong R&D track record
Mid Pharma companies still rely on business development for growth
Size and scope
Bibliography

2. Trends in Alliance and M&A Volume and Value
Alliance volume and value trends
M&A volume and value trends
Bibliography

3. Therapeutic Area Breakdown Trends
Alliance therapeutic area trends
M&A therapeutic area trends
Bibliography

4. Clinical Stage Breakdown Trends
Alliance clinical stage trends
M&A clinical stage trends

5. Mid Pharma Out-Licensing Trends
Mid Pharma out-licensing value is highly concentrated
Out-licensing to halve risk and expense
Spin-offs offer a broad range of deals
Bibliography

6. Mid Pharma Option-Based Deal Trends
Buyout options exercised
Options are getting more expensive

7. Mid Pharma Company Case Studies
Celgene is Mid Pharma’s biotech alliance leader
Allergan’s interest in biotech M&A blooms late
Merck KGaA and UCB ally most often with academic institutions

8. Appendix
About the author
Scope
Inclusions and exclusions
Categorization and classification

List of Figures:
Figure 1: Mid Pharma alliance volume by deal type, Q1 2011-Q3 2016
Figure 2: Mid Pharma alliance volume by company, Q1 2011-Q3 2016
Figure 3: Up-front value of Mid Pharma in-licensing deals by company, Q1 2011-Q3 2016
Figure 4: Total Mid Pharma alliance up-front value by deal type, Q1 2011-Q3 2016
Figure 5: Mid Pharma in-licensing average payments, Q1 2011-Q3 2016
Figure 6: Mid Pharma up-front payments as a percentage of total deal value, Q1 2011-Q3 2016
Figure 7: Mid Pharma alliance partners by partner type: in- and out-licensing deals, Q1 2011-Q3 2016 Figure 8: M&A volume on the rise in Mid Pharma, Q1 2011-Q3 2016
Figure 9: Mid Pharma M&A volume by company, Q1 2011-Q3 2016
Figure 10: Mid Pharma up-front M&A value by company, Q1 2011-Q3 2016
Figure 11: Mid Pharma total up-front M&A value, Q1 2011-Q3 2016
Figure 12: Mid Pharma M&A targets by company type, Q1 2011-Q3 2016
Figure 13: Mid Pharma acquisitions, by company and target ownerships, Q1 2011-Q3 2016
Figure 14: Average deal premium for Mid Pharma public M&A targets, Q1 2011-Q3 2016
Figure 15: Mid Pharma M&A up-front payments as percentage of total potential value, Q1 2011-Q3 2016 Figure 16: Private companies get less up-front in earn-out deals, Q1 2011-Q3 2016
Figure 17: Mid Pharma alliance volume, by therapeutic area and deal type, Q1 2011-Q3 2016
Figure 18: Mid Pharma up-front alliance value by therapeutic area, Q1 2011-Q3 2016
Figure 19: Mid Pharma alliance volume, by company and therapeutic area, Q1 2011-Q3 2016
Figure 20: Mid Pharma M&A volume by therapeutic area, Q1 2011-Q3 2016
Figure 21: Mid Pharma share of M&A value by therapeutic area, Q1 2011-Q3 2016
Figure 22: Mid Pharma M&A deal volume, by company and therapeutic area, Q1 2011-Q3 2016
Figure 23: Mid Pharma alliance volume by clinical stage, Q1 2011-Q3 2016
Figure 24: Mid Pharma up-front value of in-licensing deals by clinical stage, Q1 2011-Q3 2016
Figure 25: Mid Pharma M&A volume by clinical stage of target asset, Q1 2011-Q3 2016
Figure 26: Mid Pharma M&A up-front value by clinical stage of target asset, Q1 2011-Q3 2016
Figure 27: Mid Pharma up-front payment as a percentage of total potential M&A value, Q1 2011-Q3 2016 Figure 28: Mid Pharma out-licensing value and volume by company, Q1 2011-Q3 2016
Figure 29: Mid Pharma out-licensing value and volume by phase, Q1 2011-Q3 2016
Figure 30: Mid Pharma out-licensing volume and value by therapeutic area, Q1 2011-Q3 2016
Figure 31: Mid Pharma partners underscore spin-off strategies, Q1 2011-Q3 2016
Figure 32: Mid Pharma option deals volume and value by company, Q1 2011-Q3 2016
Figure 33: Mid Pharma option deals volume and value, Q1 2011-Q3 2016
Figure 34: Mid Pharma option deals by clinical stage, Q1 2011-Q3 2016
Figure 35: Celgene’s in-licensing deals sought out early-stage assets, Q1 2011-Q3 2016
Figure 36: Oncology and immunology spaces are Celgene’s “sweet spots”, Q1 2011-Q3 2016
Figure 37: Allergan is becoming a force in biotech M&A, Q1 2011-Q3 2016
Figure 38: Mid Pharma goes back to school with academic/research alliances, Q1 2011-Q3 2016

List of Tables:
Table 1: Mid Pharma peer set overview
Table 2: Top 10 Mid Pharma alliances by up-front value, Q1 2011-Q3 2016
Table 3: Top 10 Mid Pharma acquisitions by up-front value, Q1 2011-Q3 2016
Table 4: Mid Pharma alliance volume, by company and therapeutic area, Q1 2011-Q3 2016 Table 5: Mid Pharma M&A deal volume, by company and therapeutic area, Q1 2011-Q3 2016

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  • Allergan
  • Celgene
  • Merck KGaA
  • Shire
  • UCB
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