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US$ 63 billion M & A completed! Top 10 global pharmaceutical companies reshuffle

Echemi 2020-05-12

AbbVie announced the completion of the acquisition of Allergan. According to the terms of the agreement between the two parties, AbbVie used cash plus stocks to include Aierjian in the capital of up to US $ 63 billion. Despite repeated delays, this “marriage marriage” has finally come to an end, and AbbVie, which “swallowed” Aierjian, will rise to fourth place in the global pharmaceutical companies' revenue list.
The road to merger is difficult
AbbVie currently owns Humira, the most profitable immune drug in the history of the world. According to the financial report, Xiu Meile generated 19.169 billion US dollars of sales for AbbVie in 2019, contributing 57.62% of the revenue, which is its true pillar variety. However, as patents around the world have expired and bio-similar drugs have been approved, the sales of "Medicine King" Xiumeile has shown a downward trend, coupled with the step-by-step pursuit of the key anti-cancer drug Keytruda by Merck, EvaluatePharma It is predicted that it will become the world's new "drug king" in 2024, which will make AbbVie's demand for other innovative drugs more and more intense.
As early as June 2019, AbbVie reached an acquisition agreement with Aierjian with a view to introducing the latter's "heavy bomb" botulinum toxin BOTOX and the fast-growing antipsychotic drug Vraylar and other varieties to supplement the existing product line. The reason why this super merger has attracted much industry attention is that, in addition to the high amount of acquisition, Pfizer also planned to acquire Aierjian at a "high price" of 160 billion U.S. dollars in 2015. In the end, this allowed the industry to always maintain a wait-and-see attitude towards the success of the "marriage" between AbbVie and Erjian.
The road to merge the two pharmaceutical companies is also difficult. In order to meet the antitrust review requirements of the US Federal Trade Commission (FTC) for this acquisition, Aierjian had to sell brazikumab, an IL-23 inhibitor under investigation, used to treat autoimmune diseases to AstraZeneca. It also sold two pancreatic enzyme preparations to Nestle. AbbVie also said that the transaction was approved by all relevant government departments required by the acquisition agreement and the Irish High Court. A Erjian director will also join the AbbVie board after the transaction.
At this point, AbbVie's merger and acquisitions, which took nearly a year, ended successfully. AbbVie believes that this acquisition significantly expands and diversifies its revenue base and complements its current leadership in immunology and oncology. According to the FiercePharma website's revenue statistics for large global pharmaceutical companies in 2019, the combined AbbVie will rise from the eighth position on the list with a total revenue of 49.36 billion US dollars, surpassing Novartis and Merck to rise to fourth place The identity of the new Big Mac pharmaceutical company has reshaped the global pharmaceutical enterprise competition landscape.

The volume of pharmaceutical mergers and acquisitions suffered in the first year
The industry generally believes that due to the successive arrival of the "patent cliff", the R & D return rate of pharmaceutical companies has decreased year by year, and mergers and acquisitions have become an important means for pharmaceutical giants to obtain high-efficiency R & D pipelines and products. 2019 is an extremely active year for mergers and acquisitions in the global pharmaceutical and life sciences sector. According to data from the PricewaterhouseCoopers research report, the amount of M & A transactions in the year was as high as US $ 416 billion.




Looking back at the pharmaceutical merger and acquisition market in 2019, the most notable transaction was the acquisition of Celgene by Bristol-Myers Squibb (BMS) for $ 74 billion. Also for antitrust considerations, Xinji also sold its psoriasis treatment drug Otezla to Amgen for $ 13.4 billion. In addition, Takeda also acquired Shire for US $ 62 billion to obtain patent medicines for rare diseases, Eli Lilly acquired Loxo for US $ 8 billion to expand the anti-cancer drug pipeline, and Novartis with US $ 3.4 billion upfront and possibly as high as US $ 1.9 billion The follow-up paragraph acquired Takeda's new drug for dry eye.
Whether the upsurge of mergers and acquisitions by multinational pharmaceutical companies will continue this year is undoubtedly the focus of industry attention. Some analysts pointed out: "A series of huge mergers and acquisitions in 2019 means that in the first few months of this year, it is already unlikely to see too many mergers and acquisitions cases in large pharmaceutical companies, especially in the new coronary pneumonia epidemic. Under the hood, the probability of a larger M & A transaction is close to zero. "
This is also true. According to the statistics of EvaluatePharma, in the first quarter of this year, there were only two cases in which the transaction value of the top 5 mergers and acquisitions of global pharmaceutical and pharmaceutical companies exceeded USD 1 billion. In early January, Lilly announced the acquisition of Dermira, a company dedicated to the development of chronic skin disease treatments, for approximately US $ 1.1 billion, acquiring its innovative humanized anti-interleukin 13 (IL-13) monoclonal antibody lebrikizumab, and a The FDA approved dermatological treatment drug Qbrexza (glycopyrronium) to enhance its research and development line in the field of immunology research.
The other is a merger and acquisition transaction led by Gilead. In early March, Gilead announced that it had reached a definitive agreement with Forty Seven to acquire Forty Seven at a cash price of $ 95.50 per share. The latter ’s valuation is approximately $ 4.9 billion. Through mergers and acquisitions, Gilead will acquire Forty Seven's monoclonal antibody anti-cancer drug magrolimab, further strengthening its research and development product portfolio in the field of immuno-oncology.
EvaluatePharma's latest data shows that the global pharmaceutical industry's total transaction volume in the first few months of 2020 has fallen to its lowest point in four years. This embarrassment is more prominent under the background of vigorous development in 2019 and strong performance in the last quarter. However, the above analysts also pointed out that "the figures for the first quarter are still far from an alarmingly low level, which indicates that the true impact of the pandemic and the resulting global blockade will be seen in the coming months." What's more, the new coronary pneumonia epidemic really began to attack European and American pharmaceutical companies in March this year, which means that at least the second quarter data is needed to correctly assess the impact of the epidemic on mergers and acquisitions.

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