Topic: Pharmaceuticals and life sciences

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A healthy dose of deal-making: M&A trends in the US and Canadian healthcare sector

By Hugo Margoc (Toronto) on May 3, 2018 Posted in M&A, Pharmaceuticals and life sciences

In the first quarter of 2018, M&A activity across the world hit a 17 year record high according to Mergermarket’s Q1 2018 Global M&A Report. This is an 18 percent increase in value compared to the first quarter of 2017. This increase was affected by the surge in deal-making seen at the end of 2017 … Continue reading

Legal update: M&A in the pharma sector

By Sara Josselyn (Toronto) on February 23, 2018 Posted in M&A, Pharmaceuticals and life sciences

Of counsel James Baillieu explores the pharma M&A horizon in PharmaTimes magazine. The pharma sector saw deal activity fall in 2017 compared to previous years. While the number of deals remained robust, their value was significantly lower due to fewer large acquisitions. Looking ahead, however, many expect deal levels to pick-up as Trump’s tax reforms … Continue reading

Life sciences M&A in 2018: key strategic considerations

By Sara Josselyn (Toronto) on January 31, 2018 Posted in M&A, Pharmaceuticals and life sciences

A month into the new year, speculation continues regarding the forces that will shape mergers and acquisitions (M&A) for 2018. EY recently released a report (the Report) forecasting possible M&A trends in the life sciences sector. As noted in the Report, while the total volume and value of M&A in the life sciences sector fell … Continue reading

Private equity investments in healthcare: a look into the future

By Troy Ungerman (Toronto) on September 6, 2017 Posted in M&A, Pharmaceuticals and life sciences

Last year was a record-breaking year for private equity investments in the healthcare industry, with a total disclosed deal value reaching $36.4 billion by the end of 2016. Mid-year reviews of 2017 indicate a downward trend in the number of private equity investments but a significant increase in the value of investments compared to 2016. … Continue reading

Specificity is key: six archetypes of successful acquisitions

By Sara Josselyn (Toronto) on August 10, 2017 Posted in M&A, Pharmaceuticals and life sciences, Technology and innovation

Canadian M&A activity has continued to rise in 2017, but with the successes come many more stories of failure. Studies indicated that 70% – 90% of acquisitions ultimately fail. How does a company beat these odds? A recent article by McKinsey & Company suggests that companies who enter into acquisitions with a specific value proposition … Continue reading

Acquisitions in the life sciences start-up space: a principal-agent problem in the making

By Matthew Literovich (Toronto) on July 11, 2017 Posted in M&A, Pharmaceuticals and life sciences

Earlier this year, Bloom Burton & Co. hosted the 2017 Bloom Burton & Co. Healthcare Investor Conference. The conference brings together early stage life sciences companies with professional advisors in the industry for two days of talks given by the companies on what they are trying to accomplish and how they have been progressing. Over … Continue reading

New genetics technologies set to revolutionize life sciences

By Sara Josselyn (Toronto) on July 5, 2017 Posted in M&A, Pharmaceuticals and life sciences

Curing diseases by editing a person’s genes or using medicine specifically designed to work with their genetic profile has long been the realm of science fiction. However, new technologies have made this area of “personalized medicine” a hotbed for potential M&A growth. CRISPR, a new technology already in discussions for a Nobel Prize, is revolutionizing … Continue reading

Private equity trends towards specialization

By Troy Ungerman (Toronto) on June 15, 2017 Posted in Energy, Intellectual property, M&A, Pharmaceuticals and life sciences

Competition has increased in the private equity (PE) market. In the US, PE firms paid a 31% premium for acquisitions in 2016, an eight-year high according to Bloomberg data. There are a growing number of market participants chasing after ever scarcer quality businesses thereby causing price appreciation of businesses. In addition, the availability of low … Continue reading

Smooth sailing for marijuana start-up streaming deals?

By Sara Josselyn (Toronto) on June 1, 2017 Posted in M&A, Pharmaceuticals and life sciences

On April 13, 2017, the federal government introduced Bill C-45 in the House of Commons. This proposed legislation marks an important step towards the Liberal government’s promise to legalize and regulate the possession, sale, and distribution of cannabis in Canada before July 1, 2018. As the bill currently stands, upon coming into force, Canadians over … Continue reading

M&A trends and how to add value in medtech deals

By Eliza Dinale on May 23, 2017 Posted in M&A, Pharmaceuticals and life sciences, Technology and innovation

It is well documented that the medical technology (MedTech) industry has been one of the fastest growing sectors in North America over the past several years. In Ontario alone, there are currently 24,000 employees and over 1,300 companies working in this space. While it is quite healthy (Ontario’s MedTech exports amounted to roughly CAD $1.7 … Continue reading

Strong outlook for pharma and biotech M&A in 2017

By Seemal Patel (Toronto) on April 6, 2017 Posted in M&A, Pharmaceuticals and life sciences

While certain sectors experienced a shaky 2016 with respect to M&A activity, deal activity in the pharmaceutical and biotechnology industries held steady following record levels in 2015 and is expected to perform equally as well in 2017. In Prognosis positive: Pharma and biotech M&A outlook, a recent report by Mergermarket (the Report) on these industries, … Continue reading

Big year on the horizon for big pharma

By Sara Josselyn (Toronto) on February 16, 2017 Posted in M&A, Pharmaceuticals and life sciences

Global M&A activity in the biopharmaceutical industry skyrocketed in 2014 and 2015, eclipsing US$200 billion in deal value each year and prompting EY to declare such elevated activity to be the “new normal” in the industry. After another strong year in 2016, big pharma companies now appear poised to carry this trend into 2017. In … Continue reading

2017 M&A outlook

By Sean Williamson (Toronto) on December 8, 2016 Posted in M&A, Pharmaceuticals and life sciences

As 2016 draws to a close, Ernst & Young has released its 15th edition of its Global Capital Confidence Barometer (the GCCB), which looks forward toward the trends and expectations in the M&A market for 2017. The GCCB is survey of more than 1,700 senior executives, including 52 Canadian executives, from large global companies located … Continue reading

Outlook on healthcare sector M&A: the next 12 months

By Sara Josselyn (Toronto) on December 7, 2016 Posted in M&A, Pharmaceuticals and life sciences

Previously on this blog, we reported that M&A activity in the healthcare sector was expected to rise during 2016. According to a Market Spotlight released earlier this fall by Mergermarket in partnership with RR Donnelley, dealmakers and professionals are maintaining this positive outlook. The Market Spotlight sheds light on the subsectors of the healthcare industry … Continue reading

President Elect and M&A: a cross roads or business as usual?

By Nader Hasan (Toronto) on November 28, 2016 Posted in M&A, Pharmaceuticals and life sciences

The election of Donald Trump as President of the United States adds to a cascade of political events that have surprised observers and may have profound effects on global flows of people, capital, and goods. While nothing is set in stone, Donald Trump and his administration have led us to believe that they are contemplating … Continue reading

A global overview of M&A activity: August 2016

By Troy Ungerman (Toronto) on October 18, 2016 Posted in Energy, Infrastructure, mining and commodities, M&A, Pharmaceuticals and life sciences, Technology and innovation

MergerMarket Group recently published its September edition of Monthly M&A Insider which reported on mergers and acquisitions activity around the world for the month of August 2016. More than two thirds into the year, August was no exception to the recent rather sluggish growth in M&A activity, especially compared to the record-breaking year for M&A … Continue reading

M&A activity in the healthcare sector is on the rise

By Troy Ungerman (Toronto) on October 4, 2016 Posted in M&A, Pharmaceuticals and life sciences, Technology and innovation

M&A activity in the healthcare industry has been on an upwards trend since our last update. Good Foundations: Building Healthcare M&A and Real Estate, a report by Mergermarket on deal-making trends in the industry, found that about 90% of the respondents expect healthcare M&A to rise over the next year. The value of healthcare deals in … Continue reading

M&A prospects in the healthcare industry

By Sean Williamson (Toronto) on September 27, 2016 Posted in M&A, Pharmaceuticals and life sciences

RR Donnelley’s August 2016 VENUE Market Spotlight focused on the healthcare industry and the prospects for M&A activity in that space over the next 12 months. The report notes that there were 678 healthcare transactions in the first half of 2016 with an aggregate value of US$171.3 billion globally. These figures represent declines of 5% and … Continue reading

M&A in the life sciences sector remains healthy

By Sara Josselyn (Toronto) on June 9, 2016 Posted in Corporate finance, Pharmaceuticals and life sciences, Tax

In December 2015, we reported on the record-setting M&A activity in the life sciences sector in 2015. In a post last month, we also reported on a recent surge in M&A deals in the pharmaceutical industry, including $40 billion worth of deals announced in one day. Now, a recent report by EY suggests that while … Continue reading

Global M&A decline in Q1 2016

By Seemal Patel (Toronto) on May 10, 2016 Posted in Corporate finance, Pharmaceuticals and life sciences

According to MergerMarket’s Monthly M&A Insider Report, global M&A activity declined in Q1 2016 after strong levels of activity in 2015. The first few months of 2016 resulted in a total of 3,474 deals worth an aggregate of US$605.5 billion, down from the 4,126 deals worth US$785.5 billion in Q1 2015. The top performing sector, … Continue reading

$40 billion in deals in one day: is “big pharma” getting bigger?

By Sara Josselyn (Toronto) on May 5, 2016 Posted in Corporate finance, Pharmaceuticals and life sciences

In a single day last week, $40 billion worth of deals were announced in the pharmaceutical industry. The jaw-dropping, combined value of the announced mergers and acquisitions has turned heads, and has prompted analysts to question the impetus behind these deals. The increased activity may come as a surprise to some, as recent changes by … Continue reading

What can companies learn from PE sharks?

By Jacob Cawker (Toronto) on April 20, 2016 Posted in Corporate finance, Financial institutions, Pharmaceuticals and life sciences, Technology and innovation

Divestment is one strategy that a corporation can use to unlock funds for future growth and create long‑term shareholder value. According to a recent E&Y study, a successful divestment must meet three criteria: (i) it must create a positive impact on the valuation multiple of the remaining company; (ii) it must generate a sale price … Continue reading

Confronting the mid-market M&A valuation gap

By Leo Wang on April 12, 2016 Posted in Corporate finance, Pharmaceuticals and life sciences, Technology and innovation

Firmex and Mergermarket recently published a report entitled Mid-Market M&A: The Valuation Gap (the Report), which explores valuation challenges that buyers and sellers are facing in mid-market M&A. According to Mergermarket data, the number and value of American and Canadian mid-market M&A deals (US$10m to $250m in value) slipped year-on-year, with the slump continuing into … Continue reading

Medical marijuana M&A in Canada: update

By Sara Josselyn (Toronto) on March 22, 2016 Posted in Corporate finance, Pharmaceuticals and life sciences

In October 2015, companies engaged in the licensed production and sale of marijuana welcomed the victory of pro-decriminalization candidate Justin Trudeau. Exactly what the victory meant for the heavily regulated industry was unclear but several publicly traded companies enjoyed an immediate rise in stock prices as the potential size of the market expanded significantly. In … Continue reading