Midsize drugmakers have made the most acquisitions and mergers this year, replacing the larger drugmakers that typically make the most deals by value, The Wall Street Journal reported July 5.
So far, midsize drugmakers have made nine deals valued at a total of $13.1 million, twice what large drugmakers have spent on eight acquisitions during the same time period, according to Evaluate Group, a pharmaceutical data provider.
Among the largest deals in the industry this year was the one made by Jazz Pharmaceuticals, a midsize company that bought cannabinoid drugmaker GW Pharmaceuticals for $6.7 billion in May, the Journal reported.
Large drugmakers typically do most of the deal making. From 2016 to 2020, large drugmakers struck 178 deals valued at more than $452.3 billion, according to Evaluate data cited by the Journal. AstraZeneca, AbbVie and Pfizer have used the deals to offset losses as patents expired.
Meanwhile, midsize drugmakers made 155 deals worth about $55.8 billion between 2016 and 2020, the Journal reported.
One reason large drugmakers haven't made as many deals this year is because of a lack of targets large drugmakers think could meaningfully boost their businesses, analysts told the Journal. There are also concerns that the government could fight some deals on antitrust grounds.
Midsize drugmakers' deals have been fueled by new sources of capital and the need to find long-term growth, the Journal reported.
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