Life Sciences – Leading the M&A Rebound

Despite anxious economic conditions during early 2010, life sciences M&A (BioTech, Pharma, Devices and Diagnostics) transactions demonstrated growth and consistency not observed in other sectors. Since the beginning of 2000, the number of health care M&A transactions has grown over 166% and life sciences over 331%.

Disclosed M&A deal value across all sectors has averaged 6% of acquirors’ equity value over the last decade. However, life sciences M&A has proven to be significantly more active. 

In 2009, life sciences companies with greater than $10B market capitalizations were responsible for $250B of deal value. This equates to over 13% of their combined public market value – more than twice the broader market. Judging by Q1-2010 M&A announcements, these same life sciences acquirors are on track to do deals equal to 15% of their equity market value.

Note – Global M&A deals measured in $US. We are using a broad definition of M&A here that includes venture/private equity non-control deals, strategic venturing and partnerships. M&A data from Dealogic LLC.