2016 Pharma Dealmaking: Waiting On The High-Value Deals

Six pharma deals announced thus far in 2016 carried up-front values of $1 billion or more, down considerably from the high-volume, high-value M&A industry experienced the prior two years. Pharma manufacturers appear to be recalibrating – digesting previous acquisitions, adjusting to new biotech valuations and taking stock of the political and macro-economic climate – but fundamentals suggest pharma dealmaking will pick up. Pfizer’s $14 billion offer for Medivation might represent a turning point.

High-value, high-volume pharma M&A was predicted by many in 2016, but the big deals haven’t materialized – yet. While the volume of deals signed so far this year has continued to be robust, the total value has been below what was seen in the two prior years, leaving many to wonder when momentum will pick up, or if it will at all.

The announcement August 22 that Pfizer Inc. beat out several rivals in the auction to buy Medivation Inc....