“AS BIG PHARMA’S HOPE TURNS TO EMERGING MARKETS FOR GROWTH, DEAL OPPORTUNITIES ARE LIMITED”, SAY IMAP INDUSTRY EXPERTS
2012 May 3
IMAP’s Global Pharma & Biotech M&A Report 2012 details latest deal activity and discusses industry trends.
ISTANBUL – May 3, 2012 – IMAP, a provider of premium M&A services worldwide, released its Global Pharma and Biotech M&A Report 2012 today. The report includes a dedicated section on China’s rapidly growing Pharma market.
In 2011, the pharmaceutical industry saw 504 transactions, representing US$90 billion in total transaction value. There were significantly more transactions in the US$100 million to US$1 billion size range than in 2010. There were 182 transactions involving targets located in North America, 115 in Western Europe, and 104 in China, with 16 in Latin America. Inter-regional deal flow was most pronounced between Europe and North America; in contrast, only six of the numerous transactions in China involved foreign buyers.
“There is consensus that future growth in the Pharma Industry will mainly come from emerging markets. However, acquisitions in these markets remain difficult for Big Pharma due to lack of suitable targets and government and regulatory constraints” said Christoph Bieri, who was elected Chairman of IMAP’s Healthcare Industry Group during the partnership’s Global investment Summit in Beijing this past March.
“China in particular is expected to deliver explosive growth. The Chinese market alone will add almost half of the growth to the global industry in the next five years.” But for Big Pharma, entering China through acquisitions remains difficult, as IMAP China describes in the report’s special section about the Chinese Pharma market.
IMAP advisors have reported a strong trend by “Big Pharma” companies towards increasing their exposure in other emerging markets, and foresee a number of cross-border deals in India and an increase of inbound M&A activity in Latin America. In addition to access to emerging markets, IMAP’s industry experts also expect cost synergies, access to innovation and candidate products, and break-ups and spin-offs to drive mid-term deal flow.
About IMAP Industry Reports
IMAP periodically issues reports on all major industries, providing a global perspective on M&A activity for a given period. IMAP’s reports are a result of internal information gathered for completed M&A projects from IMAP’s locations in more than 40 countries throughout the world, as well as external industry sources. To view IMAP’s complete Global Pharma and Biotech M&A Report 2012 and other industry reports, visit: http://imap.com/industries/.
IMAP is an exclusive global M&A partnership formed in 1973 and located in more than 40 countries throughout North and South America, Eastern and Western Europe, the Middle East and Asia. In 2011, IMAP ranked third worldwide and in Europe in the Thomson Reuters League Tables for the number of deals with a value of up to US$500 million. IMAP completed 227 M&A deals and 38 capital-raising mandates in 2011. IMAP advisers provide strategic merger, acquisition, divestiture and related corporate finance services with essential local market knowledge, and industry expertise delivered with unparalleled global reach.
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