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M&A

The principal benefits from mergers and acquisitions (M&As) are increased value generation, cost efficiency and market share. M&As, like IPOs, also offer investors an opportunity to realize the returns on their capital and other invested resources. Within the past 10 years, the peak of M&A activity was 2009 with 84 deals. The average is approximately 62 deals a year.

As of November 2012, 53 M&A transactions were recorded of California companies of which 33 were biopharmaceutical, 18 diagnostics and two R&D companies. The top M&A deal was the acquisition of Amylin Pharmaceuticals for $10.6 billion by Bristol-Myers Squibb in collaboration with AstraZeneca.

For the first 11 months of this year, the top five M&A transactions of California companies accounted for a total of more than $14.5 billion. AstraZeneca came to the table in two of the three largest deals for pharmaceuticals. M&A transaction amounts were reported for 29 out of the 53 deals and accounted for more than $17.6 billion, following an upward trend of M&A deal dollars from 2009 to 2010, which were approximately $9.2 billion and $15.1 billion, respectively.

In the following snapshot, we discuss the importance of M&As for the life science industry with Gilead Sciences.

Date Amount Location Description
6/8/2012 $1.4B San Clemente Boston Scientific Corp. of Natick, Mass. acquired the remaining interest that it did not already own in Cameron Health Inc., a San Clemente-based manufacturer of defibrillators, for $1.4 billion.
6/19/2012 $1.2B San Diego AstraZeneca PLC of the UK merged with Ardea Biosciences Inc., a San Diego- based biotechnology company, for $1.2 billion.
8/9/2012 $7.2B(BMY)
$3.4B(AZ)
San Diego New York-based Bristol-Myers Squibb Co. acquired the entire share capital of Amylin Pharmaceuticals Inc., a San Diego-based pharmaceutical manufacturer for $7.2 billion. AstraZeneca PLC of the UK acquired a minority stake in San Diego-based Amylin Pharmaceuticals for $3.4 billion.
9/5/2012 $430M San Diego Sunovion Pharmaceuticals Inc. of Massachusetts, a unit of Aptiom Inc., which is a wholly-owned subsidiary of Dainippon Sumitomo Pharma America Holdings Inc., acquired the entire share capital of Elevation Pharmaceuticals Inc., a San Diego- based manufacturer of respiratory pharmaceuticals, for $430 million.
9/13/2012 $925M Canoga Park (LA) Thermo Fisher Scientific Inc. acquired One Lambda Inc., a Canoga Park-based manufacturer of transplant diagnostics products, for $925 million.

 

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M&A
Gilead Sciences

Gilead
Gilead
“The M&A environment for the life sciences industry is thriving and evolving. We see M&A as focused on recognizing and supporting the strengths of complementary partners. I expect M&A to pay dividends for our industry in the coming years, by being a critical source of innovation.”"

John Martin, Ph.D.
Chairman and CEO, Gilead Sciences

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