Capital allocation and M&A continue to remain levers of growth as cash reserves grow and debt remains cheap. Many companies are looking towards core-strengthening asset purchases, low-scale asset divestments, and cost-saving tax inversions.
Author: Ali Al-Bazergan and Rajan Sharma
Publisher: Datamonitor Healthcare
Number of pages:27
Datamonitor Healthcare’s PharmaVitae team explores the value in the flurry of recent deals, shedding light on incentives and how they may influence the market and future deal-making. With short-term challenges seeing top line revenue from the PharmaVitae portfolio to grow by a modestly in 2016, transactions will aim to counter industry headwinds. Amidst market turbulence, companies will continue their search for mid-sized pipeline-centric growth assets, given increasing cash balances and uncertain revenue projections. Will M&A continue to remain an appetizing strategic policy to fuel further consolidation?
Explore and visualize M&A dynamics in the pharmaceutical and biotechnology industries:
major deal discussion
Table of Contents
4 EXECUTIVE SUMMARY
5 PFIZER COURTSHIP OF ASTRAZENECA FOR COMPLEMENTARY ASSETS AND TAX BENEFITS
10 Tax inversion
16 NOVARTIS AND GLAXOSMITHKLINE RESTRUCTURE THROUGH ASSET SWAP DEALS
20 Industry-wide trend of asset stripping and core strengthening
22 BAYER TO PAY $14.2BN FOR MERCK’S CONSUMER CARE DIVISION
22 Analyst comment
23 VALEANT PARTNERS HEDGE FUND IN ATTEMPED ALLERGAN TAKEOVER
23 Allergan response
23 What’s next?
25 MARKET OVERVIEW
25 How do these transactions change the market?
List of figures
5 Figure 1: Pfizer and AstraZeneca merger overview
6 Figure 2: Pfizer and AstraZeneca pipeline snapshot
8 Figure 3: Pfizer structure change with AstraZeneca
11 Figure 4: Pfizer waterfall chart, 2015
16 Figure 5: Novartis and GlaxoSmithKline asset swap overview
19 Figure 6: Novartis’s portfolio before and after asset swaps with GlaxoSmithKline
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