Mega-mergers (defined here as M&A events with deal sizes >$5bn) have been a long-term strategic feature of the pharmaceutical industry and have played a key role in shaping the structure and composition of today's leading companies. Is it possible to quantify exactly how much of Big Pharma's sales growth has been driven by M&A versus how much has been self-produced through organic growth?

Scope

- This report analyzes 22 large scale M&A events that have occurred to date within the Big Pharma peer set over the period 1995-2014

- We've identified two distinct classes of M&A event: small/fast growth acquisitions and big/slow growth acquisitions.

- Using these two classes we've identified three company-level M&A growth strategies that can be attributed to each of the Big Pharma players:

- In addition to the impact of mega-M&A on sales performance the report also assesses the financial implications associated with different M&A strategies

Highlights

Twenty-two large-scale M&A events (defined as those valued above $5 billion) have occurred within Big Pharma over 1995-2014. Furthermore, every Big Pharma player has undertaken large scale M&A activity at some stage over this period, thereby illustrating it as an ingrained peer set strategy.

Over the period 1995-2014, Big Pharma prescription pharmaceutical sales are forecast to increase from $84 billion to $381 billion, with absolute growth of +$187 billion provided by M&A activity. In other words, two-thirds (c.63%) of Big Pharma sales expansion over a 20-year period will be driven entirely by M&A activity.

Reasons to Purchase

- Assess how much of Big Pharma's sales growth over 1995-2014 will be driven by M&A versus how much will be self-produced through organic growth.

- Assess how we've classified each of the current Big Pharma players by their dominant M&A growth strategy

- Analyze the M&A and organic sales growth profiles for each Big Pharma company over the period 1995-2014


Table of Contents



114 pages

Publication Date : December 2009