2020 will be another big year for mergers and acquisitions in the pharmaceutical industry, according to a report from professional services firm EY cited by Bloomberg.
The report, released Jan. 13, predicts that cell and gene therapy companies will dominate the deals this year.
The industry has the potential for almost $300 billion in deals this year, even without as many megamergers as there were in 2019, Bloomberg reported. The normal benchmark for deals is about $200 billion per year.
The report from EY also suggested that most of the largest pharmaceutical companies have the ability to acquire smaller companies and about a third of them have the capacity for megamergers, or deals that are worth at least $40 billion.
"Market volatility and the desire to deepen therapeutic focus will continue to be deal catalysts in 2020," Peter Behner, global life sciences transactions leader at EY told Bloomberg.
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