Big Pharmas finally strike with GSK, Merck acquisitions, signaling accelerating pace of M&A18 Apr 2023 20:19
https://www.fiercepharma.com/pharma/big-pharmas-finally-strike-gsk-merck-acquisitions-signaling-accelerating-pace-ma
"After circling around the crop of biotechs ripe for a takeover, Big Pharma companies have finally decided to strike.
Merck & Co. made the first jab, taking Prometheus Biosciences and its bowel disease candidate in a $10.8 billion transaction Sunday. Then GSK struck Tuesday, offering $2 billion for Bellus Health to challenge its fellow pharma dealmaker in the cough market.
The two deals are a long-awaited sign of green shoots in the industry, adding to a fairly short list that includes Pfizer’s $43 billion acquisition of Seagen and Amgen’s $27.8 billion buy of Horizon Therapeutics.
Moody’s Investor Services thinks these are just the start, with M&A activity expected to remain high over the next year to 18 months. Pharmas are trying to restock their pipelines due to approaching patent cliffs and long-term pricing pressure, Moody’s wrote in a Monday sector commentary note."
"Other Big Pharmas that are likely to strike include Bristol Myers Squibb, Royalty Pharma and Merck again, according to Moody's. AbbVie, Biogen, Gilead, Pfizer and Viatris also have moderate potential for deals, the firm says, while Amgen, Eli Lilly, Johnson & Johnson and Regeneron are less likely.
The deals to come could be large. Moody’s thinks there is potential for acquisitions representing 10% or more of the acquirer’s market cap. That could come in one single deal or multiple over a short time frame.
Merck, even after the Prometheus buy, is looking to expand revenues beyond the blockbuster immunotherapy Keytruda.
“Although Merck's tone appears to have recently shifted towards smaller-to-medium sized deals, we believe the company would opportunistically pursue a larger deal,” Moody’s wrote.""
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