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Global pharmaceutical deals market: Value falls to $30.7 billion in Q4 2012

Press Release   •   Feb 22, 2013 14:29 GMT

The global pharmaceutical deals market saw a decline in Q4 2012, due to economic and political uncertainty. A lack of confidence saw many companies refrain from making acquisitions. The global pharmaceutical mergers market saw the value of deals fall to $30.7 billion in Q4 2012, down from $31.5 billion in Q3 2012. Despite this, the number of deals actually rose, from 296 in Q3 2012 to 313 in Q4 2012.

The central nervous system therapeutics markets continued to account for the major part of deal activity with 26 deals worth $3.3 billion in Q4 2012. The oncology therapeutics market stood in second place with 25 deals worth $1.5 billion in Q4 2012.

Companies in the pharmaceutical and healthcare industry entered into partnerships to enhance their business. The industry reported an increase in the number of partnership transactions and their values in Q4 2012 with 208 deals worth $4.3 billion, as compared to 196 deals worth $304.9m in Q3 2012. On a year-on-year basis, the number of deals increased and deal values decreased in Q4 2012, when compared to 200 deals worth $4.5 billion in Q4 2011.

Of the 208 deals reported in Q4 2012, 119 were co-development deals, 33 were joint venture deals, 32 were co-marketing deals and 24 were related to other category.

Bayer Pharma entering into a five-year, multi-target agreement worth $758m with Evotec AG, a biopharmaceutical company, for developing three clinical candidates for the treatment of endometriosis and Ablynx NV, a biopharmaceutical company, through its subsidiary, entering into an agreement worth $586.8m with Merck & Co, to develop and commercialize nanobody candidates directed at a voltage gated ion channel with the option to develop and commercialize a nanobody for a second target are some of the significant partnerships announced in Q4 2012.

The pharmaceutical and healthcare industry reported an increase in the number of licensing deals and a decrease in their values in Q4 2012 with 117 deals worth $4.8 billion, as compared to 111 deals worth $7 billion in Q3 2012. Though licensing deals seemed to be affordable to companies, they did not invest in them owing to the current uncertain market conditions. On a year-on-year basis, the number of deals and deal values decreased in Q4 2012, when compared with 119 deals worth $5.3 billion in Q4 2011. The oncology therapeutics market recorded much of the licensing activity with 25 licensing deals worth $628.4m in Q4 2012. In Q4 2012, to receive rights to products, companies paid $659m as upfront fees and agreed to $3.6 billion as milestone fees.

In licensing by phase, products in Marketed phase recorded 78 deals, accounting for 24% of the total deals from Q4 2011 to Q4 2012. In second place, products in Pre-Clinical phase accounted for 21% of the deals. In deal values, Pre-Clinical products accounted for 33% of the deal value. In second place were products in Phase II with $3.5 billion, which accounted for 23% of the deal value.

Janssen Biotech, Inc. (formerly Centocor Ortho Biotech Inc.), a subsidiary of Johnson & Johnson (J&J), entering into a licensing agreement worth $945m with Astellas Pharma Inc., for ASP015K, an oral, small molecule Janus Kinase (JAK) inhibitor and Pfizer Inc. Entering into a licensing agreement worth $515m with Halozyme Therapeutics, Inc. (HALO), a biopharmaceutical company, for developing and commercializing products combining proprietary Pfizer biologics with Halozyme's Enhanze technology, are two of high value licensing deals reported in Q4 2012.

The venture capital market reported an increase in the number of deals and deal values in Q4 2012. The market reported 256 deals worth $2.2 billion in Q4 2012, as compared to 246 deals worth $1.9 billion in Q3 2012. On a year-on-year basis, the number of deals and deal values increased in Q4 2012, when compared to 245 deals worth $2 billion in Q4 2011.

For more information on the global pharmaceutical deals market, please click here: Global Pharmaceutical Deals Market
For more information on the Healthcare and Medical market, please click here: Healthcare and Medical market

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