Big Pharma Mega-Mergers 1995-2014

PHARMAVITAE SECTOR ANALYSIS

Big Pharma Mega-Mergers 1995-2014

A 20-year perspective on how M&A has shaped leading pharmaceutical companies

Large-scale M&A activity remains an integral strategy of Big Pharma and will contribute nearly two-thirds of peer set sales growth over 1995–2014. Analysis of the 22 largest Big Pharma M&A events since 1995, demonstrates that there are two distinct acquisition types: the purchase of smaller target companies with the primary strategic motive of extracting future sales growth and the purchase of larger target companies with the primary strategic motive of gaining an immediate increase in scale. Furthermore, Big Pharma players can be classified by their overriding growth strategy: those that ‘Buy Growth’, those that ‘Buy Scale’, those that used ‘Multiple M&A’ and those—only two players from a total of 12—that have primarily avoided largescale M&A to focus on an organic growth-driven strategy.

Reference Code: DMHC2583 Publication Date: December 2009

Big Pharma Mega Mergers 1995-2014

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DMHC2583/Published 12/2009 Page 1

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About the PharmaVitae team

Datamonitor’s PharmaVitae team is led by Dr Chris Phelps. Chris has over 10 years' experience in the pharma and biotech sector with roles spanning competitive intelligence, strategy consulting, business development and R&D. He holds a first class degree in biochemistry from Oxford University and a...