Deals in Pharmaceutical & Healthcare Industry Decreased in Q3 2016

GlobalData’s “Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals – Q3 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 Q3 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 Q3 2016

Merger and acquisition (M&A) deals, including asset purchases, recorded a decrease in the number of deals and deal values in Q3 2016 with 113 deals worth USD31.5 billion, compared to 273 deals worth USD75.1 billion in Q3 2015. On a quarter-on-quarter basis, the number of deals and deal values decreased in Q3 2016, compared to 135 deals worth USD96.1 billion in Q2 2016.

The central nervous system therapeutics market accounted for the majority of M&As with 145 deals worth USD66.6 billion between Q3 2015 and Q3 2016. Oncology therapeutics market followed in second place with 140 deals worth USD98.6 billion.

Partnerships Decreased In Q3 2016

Partnerships reported a marginal decrease in the number of deals and an increase in deal values with 192 deals worth USD4.5 billion in Q3 2016, compared to 197 deals worth USD3.3 billion in Q3 2015. On a quarter-on-quarter basis, the number of partnerships and their values decreased in Q3 2016, compared to 273 deals worth USD4.6 billion in Q2 2016.

Pharmaceutical and healthcare companies entered into 192 partnerships for Preclinical stage products, which accounted for 31% of the deals from Q3 2015 to Q3 2016. Products in Phase II stage stood second with 112 deals, which accounted for 18% of the deals.

Oncology therapeutics market recorded the highest value with USD11.1 billion deal value, USD1.8 billion milestone payments and USD981m upfront payments between Q3 2015 and Q3 2016, followed by the immunology market with USD10.1 billion in deal value, USD1.9 billion milestone payments and USD1.6 billion upfront payments.

Licensing Deals Repoted A Decline In Q3 2016

Licensing agreements reported a decrease in the number of deals and deal values in Q3 2016 with 138 deals worth USD10.2 billion in Q3 2016, as compared to 157 deals worth USD11.5 billion in Q3 2015. On a quarter-on-quarter basis, the number of licensing deals and their values decreased in Q3 2016, compared to 145 deals worth USD11.5 billion in Q2 2016.

Licensing agreements recorded a decrease in upfront payments and milestone payments in Q3 2016. A total of USD592.7m and USD5 billion were reported as upfront and milestone payments in Q3 2016, compared to USD707.5m and USD7.8 billion, respectively in Q3 2015. On a quarter-on-quarter basis, upfront payments and milestone payments decreased in Q3 2016, compared to USD1.1 billion and USD9.4 billion, respectively, in Q2 2016.

In licensing by phase, products in Preclinical stage recorded 175 deals, which accounted for 33% of the total deals between Q3 2015 and Q3 2016. In second place, products in Phase II accounted for 17% of the deals.

Venture Capital Investments Decreased In Q3 2016

The venture capital (VC) segment reported 174 deals worth USD2.1 billion in Q3 2016, as compared to 201 deals worth USD3.5 billion in Q3 2015. On a quarter-on-quarter basis, the number of VC deals and their values decreased in Q3 2016, compared to 197 deals worth USD2.4 billion in Q2 2016.

Orbimed Advisors, LLC topped the list of venture financing firms by participating in 33 transactions worth USD1.5 billion in the last five quarters (Q3 2015 – Q3 2016).

Deals In North America Reported A Decrease In Q3 2016

North America recorded a decrease in the number of deals and deal values in Q3 2016. The region registered 613 deals worth USD55.9 billion in Q3 2016, compared to 704 deals worth USD74.2 billion in Q3 2015. On a quarter-on-quarter basis, the number of deals and deal values decreased in Q3 2016, when compared to 708 deals worth USD132.2 billion in Q2 2016.

Europe recorded a decrease in the number of deals and deal values in Q3 2016 with 255 deals worth USD29.3 billion, as compared to 355 deals worth USD68.7 billion in Q3 2015. On a quarter-on-quarter basis, the number of deals decreased and deal values increased in Q3 2016, when compared to 335 deals worth USD24.2 billion in Q2 2016.

Asia Pacific recorded a decrease in the number of deals and deal values in Q3 2016. The region reported 200 deals worth USD15.1 billion in Q3 2016, as compared to 267 deals worth USD21.3 billion in Q3 2015. On a quarter-on-quarter basis, the number of deals and deal values decreased in Q3 2016, when compared to 222 deals worth USD16.5 billion in Q2 2016.

South and Central America and the Middle East and African regions, recorded a decrease in the number of deals and an increase in deal values in Q3 2016 with 156 deals worth USD38.5 billion, as compared to 167 deals worth USD21.3 billion in Q3 2015. On a quarter-on-quarter basis, the number of deals decreased marginally and deal values increased in Q3 2016, when compared to 157 deals worth USD18.5 billion in Q2 2016.

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