In 2014, the bio-pharmaceutical industry mergers and acquisitions showed a hot scene, with a total amount of 200 billion US dollars.
This prosperous market relies on the highly open IPO market of the biopharmaceutical industry in 2014. Through the IPO of biopharmaceutical companies, biotech companies receive large sums of money from investors, and these funds partially bear the risks in drug development. Among the wind investment funds obtained by the biomedical industry, large mature biotechnology companies only get 25%, while small, innovative biotechnology companies have won the favor of many investors.
According to the HBM report, biopharmaceutical companies have been a hot year for VCs in the past few decades. In 2014, European and American biopharmaceutical companies' prepayments amounted to US$8.18 billion, almost double that of 2013. Although they did not surpass 2009, they have already created a record high in five years. In the first quarter of 2009, the industry's three giants Wyeth Genetech and Schering-Plough were acquired by Pfizer, Roche and Merck respectively, with a total transaction volume of more than 150 billion. No one has ever come before, and it has become the unprecedented peak of total transactions (Figure 1). In addition, with the announced $78.8 billion in transactions (including Actavis 660 billion acquisition of Allergan and Merck 8.4 billion acquisition of Cubist), and $45.6 billion in asset acquisitions and $13.3 billion in acquisitions in other parts of the world, 2014 Global Biopharmaceuticals The total amount of mergers and acquisitions is nearly $220 billion (Figure 1).
Figure 1 Trends in biopharmaceutical M&A transactions in 2005-2014
The venture capital-backed biopharmaceutical companies' prepaid transaction volume and overall transaction volume reached a record high. From 2005 to 2014, the venture capital-backed biopharmaceutical company's merger prepayment transaction amount exceeded US$5 billion, and the total transaction amount exceeded US$8 billion. In the past five years, the proportion of prepaid transactions to the overall transaction has been relatively stable, hovering between 40% and 50% (Figure 2).
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Figure 2 2005-2014 venture capital support biopharmaceutical company transaction amount decomposition
Among them, the US biopharmaceutical company supported by venture capital also ushered in a bumper harvest year, with the transaction prepayment amount reaching the highest in nearly 10 years, reaching USD 4.5 billion. At the same time, the amount of prepaid payments from venture capital-backed European biotech companies shrank, reaching $500 million in 2014, a 50% drop from 2013 (Figure 3).
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Figure 3 Comparison of M&A transaction trends of biopharmaceutical companies supported by European and American VCs in 2005-2014
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