1. Executive Summary
1.1 M&A in the Pharmaceutical Industry: Market Review
1.2 Areas Covered in this Report
1.3 Research & Analysis Methods
2. Pharma M&A: Introduction
2.1 Big M&A Deals are a Feature of the Pharma Industry
2.2 A Brief History of Pharma Industry M&A
2.3 ‘Big Pharma’: A Product of M&A
2.4 M&A Activity Reached New Heights in 2009
2.5 M&A Activity in 2010 is Driven by the Threat to Pharma’s ‘Blockbuster Model’
2.6 Is M&A the Answer?
2.7 More Informal Alliances: The Long-Term Future for the Industry?
3. Pharma M&A 2009-2010: Anatomy of the Biggest Deals
3.1 Pfizer and Wyeth
3.1.1 Pfizer Has Acquired Some of its Bestselling Drugs from Wyeth
3.1.2 Pfizer's M&A Activity will Succeed in Buying Growth
3.2 Roche and Genentech
3.2.1 Genentech is Central to Roche's Commercial Development
3.3 Merck & Co. and Schering-Plough
3.3.1 The Augmented Merck Pipeline
3.3.2 Merck's Commercial Future After Merger
3.4 Merck KGaA and Millipore
3.4.1 Merck KGaA, Serono and Millipore
3.4.2 Merck KGaA's Commercial Prospects
3.5 Abbott and Solvay
3.5.1 Abbott and Piramal
3.5.2 Abbott's Overall M&A Strategy
3.6 Teva and Ratiopharm
3.6.1 Teva Dominates M&A Activity in the Generic Market
3.6.2 Daiichi Sankyo and Ranbaxy
3.6.3 Other M&A in the Generics Sector
3.6.4 Sanofi-Aventis' Penetration of the Generics Sector
3.7 Astellas and OSI Pharmaceuticals
3.8 GlaxoSmithKline and Stiefel Laboratories
3.8.1 GSK's Broader Strategy
3.8.2 What About Competitors?
3.9 Grifols and Talecris
3.10 Pharma M&A 2009-2010: Which of These Deals is Most Significant?
4. Potential Candidates for Pharma M&A: 2010-2020
4.1 More ‘Mega-Mergers’ by 2020?
4.2 Bristol-Myers Squibb: Perennial M&A Target
4.3 Overall Trends for M&A in the Forecast Period
4.4 Biotechnology Companies and Pharma: a Symbiotic Relationship
4.5 Future Biotechnology M&A
4.6 The Biggest Potential Biotech M&A Deals
4.7 Biogen Idec
4.7.1 Biogen Idec: Portfolio and Pipeline
4.7.2 Will Biogen Idec be Acquired?
4.8 Genzyme
4.9 Celgene
4.10 Vertex Pharmaceuticals
4.10.1 Vertex to be Acquired in 2010-11?
4.11 Human Genome Sciences
4.12 Crucell
4.13 Intercell
4.14 Seattle Genetics
4.15 Alexion Pharmaceuticals
4.16 Immunogen
4.17 United Therapeutics
4.18 Onyx Pharmaceuticals
4.19 Auxilium Pharmaceuticals
4.20 Allos Therapeutics
4.21 Amylin Pharmaceuticals
4.22 BioMarin Pharmaceutical
4.23 Rigel Pharmaceuticals
4.24 Emerging Markets: M&A Activity
4.25 Dr. Reddy's Laboratories
4.26 Cipla
4.27 Other Areas for M&A
5. M&A in the Pharma Industry 2010-2020: SWOT Analysis
5.1 M&A Allows Companies to Become Stronger Through Consolidation and Diversification
5.2 Bigger is Not Always Better: Company Size Can Be a Weakness
5.3 The Opportunity for a New, Globalised Business Model
5.4 Size Can Threaten Investor Confidence, Public Goodwill, Company Morale and Drug Development Prospects
6. Expert Opinion
6.1 Interview with Dr Cyrus Chowdhury, Vice President of Global Market Access, Insight Strategy Advisors, New York
6.1.1 Why is M&A in the Emerging Geographical Markets Likely to be a Major Focus for the Pharmaceutical Industry over the Next Ten Years?
6.1.2 Which Emerging Markets Have the Greatest Potential for M&A?
6.1.3 Which Therapeutic Areas Have Most Potential in the Emerging Markets?
6.1.4 Strategies of the Larger Companies
6.1.5 What Sectors and Types of Companies Will Be Targeted for M&A Activities?
6.1.6 Prospects from 2010 Onwards
6.1.7 Difficulties Facing M&A Strategies in the Emerging Markets
7. Conclusions
7.1 M&A is One of the Pharma Industry's Best Hopes for Managing the Patent Cliff
7.2 Will ‘Mega-Mergers’ Be Superseded by Strategies Based on Small- and Medium- Sized Acquisitions?
7.3 Biotechnology and Emerging Markets will be Important Targets for M&A
7.4 Concluding Remarks
List of Tables
Table 2.1 Top Ten M&A Deals in all Industries Worldwide, 2000-2009
Table 2.2 The Biggest Pharma M&A Deals of All Time ($bn)
Table 2.3 The Biggest Pharma M&A Deals ($bn), 2000-2009
Table 2.4 The 20 Biggest Pharma Companies Sales ($bn), Global Market Share (%), Historical M&A Activity, 2009
Table 2.5 M&A Activity: Number of Deals and Overall Deal Value ($bn), 2000-2009
Table 2.6 The Top 10 Drugs: Revenues ($bn) and Forecast Patent Expiry Date, 2009
Table 2.7 Some Pharma Industry Strategies for Minimising Revenue Loss, 2010
Table 2.8 The 15 Largest Pharma Partnership Deals ($bn), 2005-2009
Table 3.1 Pharma M&A deals over $0.5bn, 2009 and (up to Q2) 2010
Table 3.2 Pharma Industry Exposure to the Patent Cliff by 2012, Revenues ($bn), Proportion of Total Revenues ($bn)
Table 3.3 Pfizer's Top Products, 2009
Table 3.4 Pfizer Products Approaching Patent Expiry, 2010
Table 3.5 Pfizer's Pipeline, Phase III and Later, 2010
Table 3.6 Pfizer's Revenues ($bn), Growth (%), CAGR (%), 2005-2010
Table 3.7 Pfizer's Revenues ($bn), Growth (%), CAGR (%), 2010-2020
Table 3.8 Roche's Bestselling Products, Revenue ($bn), 2009
Table 3.9 Roche's Pipeline, Phase III and Later, 2010
Table 3.10 Roche's Revenues ($bn), Growth (%), CAGR (%), 2010-2020
Table 3.11 Merck & Co’s Pipeline, Phase III and Beyond, 2010
Table 3.12 Merck & Co’s Bestselling Products, Revenue ($bn), 2009
Table 3.13 Merck & Co’s Products Approaching Patent Expiry, 2010
Table 3.14 Merck & Co’s Revenues ($bn), Growth (%), CAGR (%), 2010-2020
Table 3.15 Merck KGaA's Pipeline, Phase III and Beyond, 2010
Table 3.16 Merck KGaA's Revenues ($bn), Growth (%), CAGR (%), 2010-2020
Table 3.17 Abbott's Pipeline, Phase III and Beyond, 2010
Table 3.18 Abbott's Revenues ($bn), Growth (%), CAGR (%), 2010-2020
Table 3.19 The Top 10 Generic Market M&A Deals 2000-2010 (up to Q2)
Table 3.20 The Top Generic Companies: Revenues ($bn), Annual Growth (%), 2009
Table 3.21 Teva's Revenues ($bn), Growth (%), CAGR (%), 2010-2020
Table 3.22 Important M&A and Alliance Activity in the Generics Sector, 2000-2010
Table 3.23 Japan-US M&A deals, 2009-2010 (up to Q2)
Table 3.24 Dermatology Products of GSK and Stiefel Laboratories, 2010
Table 4.1 Biotechnology M&A Activity: Number of Deals and Overall Deal Value ($bn), 2000-2009
Table 4.2 The Largest Biotech Companies by Revenues ($bn), 2009
Table 4.3 Biotech M&A Target Companies and Possible Acquirers, 2010
Table 4.4 Biogen Idec: Products and Pipeline, 2010
Table 4.5 Genzyme: Products and Pipeline, 2010
Table 4.6 Celgene: Products and Pipeline, 2010
Table 4.7 Vertex: Products and Pipeline, 2010
Table 4.8 Human Genome Sciences: Pipeline, 2010
Table 4.9 Crucell: Products and Pipeline, 2010
Table 4.10 Intercell: Products and Pipeline, 2010
Table 4.11 Seattle Genetics: Pipeline, 2010
Table 4.12 Alexion: Products, 2010
Table 4.13 Immunogen: Pipeline, 2010
Table 4.14 United Therapeutics: Products and Pipeline, 2010
Table 4.15 Onyx Pharmaceuticals: Products, 2010
Table 4.16 Auxilium Pharmaceuticals: Products, 2010
Table 4.17 Allos Therapeutics: Products, 2010
Table 4.18 Amylin Pharmaceuticals: Products and Pipeline, 2010
Table 4.19 BioMarin Pharmaceutical: Products and Pipeline, 2010
Table 4.20 Rigel Pharmaceuticals: Pipeline, 2010
Table 5.1 SWOT Analysis for Pharma Industry M&A, 2010-2020
List of Figures
Figure 2.1 Companies' Shares of the Global Pharma Market (%), 2009
Figure 2.2 Company Revenue Growth (%) for the Top 20 Pharma Companies, 2009
Figure 2.3 Number of M&A Deals, 2000-2009
Figure 2.4 Value of M&A Deals ($bn), 2000-2009
Figure 2.5 Number and Value of M&A Deals ($bn), 2000-2009
Figure 2.6 NCEs Receiving FDA Approval, 2002-2009
Figure 2.7 Revenue Lost to Patent Expiry 2009 ($m) and Predicted Revenue Loss After Patent Expiry ($m), 2010-2014
Figure 3.1 Pharma Industry Exposure to the Patent Cliff by 2012, Revenues ($bn)
Figure 3.2 Pfizer’s Revenues ($bn), 2005-2010
Figure 3.3 Pfizer’s Revenues ($bn), 2010-2020
Figure 3.4 Pfizer’s Revenues ($bn), with and Without the Effects of the Wyeth Merger, 2010-2020
Figure 3.5 Roche’s Revenues ($bn), 2010-2020
Figure 3.6 Merck & Co's Revenues ($bn), 2010-2020
Figure 3.7 Merck KGaA’s Revenues ($bn), 2010-2020
Figure 3.8 Abbott’s Revenues ($bn), 2010-2020
Figure 3.9 Teva’s Revenues ($bn), 2010-2020
Figure 4.1 Number of Biotechnology M&A Deals Compared to Traditional Pharmaceutical M&A Deals, 2000-2009