Deals in Pharmaceutical & Healthcare Industry Decreased in Q2 2016

GlobalData’s “Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals – Q2 2016” report is an essential source of data and trend analysis on partnerships, licensing, mergers and acquisitions (M&A) and financing in the pharmaceutical and healthcare market. The report provides detailed information on partnerships, licensing agreements, M&As, equity/debt offerings, private equity and venture financing transactions registered in the pharmaceutical and healthcare industry in Q2 2016. The report presents detailed comparative data on the number of deals and their value in the past five quarters subdivided into deal types, segments, and geographies. The report also offers information on the top venture capital and advisory firms in the pharmaceutical and healthcare industry.

GlobalData derived the data presented in this report from proprietary in-house Pharma eTrack deals database and through primary and secondary research.

Number of M&A’s Decreased In Q2 2016

Merger and acquisition (M&A) deals, including asset purchases, recorded a decrease in the number of deals and an increase in deal values in Q2 2016 with 131 deals worth USD88.8 billion, compared to 276 deals worth USD65.9 billion in Q2 2015. On a quarter-on-quarter basis, the number of deals decreased and deal values increased in Q2 2016, compared to 137 deals worth USD56.9 billion in Q1 2016.

The oncology therapeutics market accounted for the majority of M&As with 152 deals worth USD103.4 billion between Q2 2015 and Q2 2016. Central nervous system therapeutics market followed in second place with 150 deals worth USD58.1 billion.

Partnerships Decreased In Q2 2016

Partnerships reported a decrease in the number of deals and deal values with 262 deals worth USD4.4 billion in Q2 2016, compared to 315 deals worth USD8.8 billion in Q2 2015. On a quarter-on-quarter basis, the number of partnerships and their values decreased in Q2 2016, compared to 293 deals worth USD12 billion in Q1 2016.

Pharmaceutical and healthcare companies entered into 184 partnerships for Preclinical stage products, which accounted for 33% of the deals from Q2 2015 to Q2 2016. Products in Phase II stage stood second with 101 deals, which accounted for 18% of the deals.

Oncology therapeutics market recorded the highest value of partnerships with USD14.5 billion deal value, USD3.6 billion milestone payments and USD2.3 billion upfront payments between Q2 2015 and Q2 2016, followed by the immunology market with USD13.4 billion in deal value, USD3.9 billion milestone payments and USD2.5 billion upfront payments.

Licensing Deals Repoted A Decline In Q2 2016

Licensing agreements reported a decrease in the number of deals and an increase in deal values in Q2 2016 with 138 deals worth USD11 billion in Q2 2016, as compared to 154 deals worth USD6.4 billion in Q2 2015. On a quarter-on-quarter basis, the number of licensing deals decreased and their values increased in Q2 2016, compared to 149 deals worth USD9.3 billion in Q1 2016.

Licensing agreements recorded an increase in upfront payments and milestone payments in Q2 2016. A total of USD1.1 billion and USD8.9 billion were reported as upfront and milestone payments in Q2 2016, compared to USD770.2m and USD2.9 billion, respectively in Q2 2015. On a quarter-on-quarter basis, upfront payments decreased and milestone payments increased in Q2 2016, compared to USD1.3 billion and USD4.1 billion, respectively, in Q1 2016.

In licensing by phase, products in Preclinical stage recorded 139 deals, which accounted for 30% of the total deals between Q2 2015 and Q2 2016. In second place, products in Phase II accounted for 20% of the deals.

Venture Capital Investments Decreased In Q2 2016

The venture capital (VC) segment reported 181 deals worth USD2.2 billion in Q2 2016, as compared to 206 deals worth USD3.5 billion in Q2 2015. On a quarter-on-quarter basis, the number of VC deals and their values decreased marginally in Q2 2016, compared to 210 deals worth USD3.2 billion in Q1 2016.

Orbimed Advisors, LLC topped the list of venture financing firms by participating in 28 transactions worth USD1.3 billion in the last five quarters (Q2 2015 – Q2 2016).

Deals In North America Reported A Decrease In Q2 2016

North America recorded a decrease in the number of deals and an increase in deal values in Q2 2016. The region registered 678 deals worth USD122.9 billion in Q2 2016, compared to 856 deals worth USD118.9 billion in Q2 2015. On a quarter-on-quarter basis, the number of deals decreased and deal values increased in Q2 2016, when compared to 691 deals worth USD71.2 billion in Q1 2016.

Europe recorded a decrease in the number of deals and deal values in Q2 2016 with 321 deals worth USD23.7 billion, as compared to 418 deals worth USD29.5 billion in Q2 2015. On a quarter-on-quarter basis, the number of deals and deal values decreased in Q2 2016, when compared to 344 deals worth USD27.8 billion in Q1 2016.

Asia Pacific recorded a decrease in the number of deals and deal values in Q2 2016. The region reported 215 deals worth USD13.7 billion in Q2 2016, as compared to 295 deals worth USD21.6 billion in Q2 2015. On a quarter-on-quarter basis, the number of deals and deal values increased in Q2 2016, when compared to 203 deals worth USD13.5 billion in Q1 2016.

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