Pharma and Biotech M&A Deals Reached Record $212 Billion in 2014

EP Vantage 2014 in Review report shows sector eclipsed $152 billion raised in 2009, the year of the mega merger

20-Mar-2015 - United Kingdom

Despite a slight wobble in the spring, the pharma and biotech sector came back stronger than ever in 2014, racking up a record-breaking $212 billion in M&A transactions. The feel good factor also extended to IPOs. Largely fueled by investor appetite for immunotherapy, 2014 boasted 87 flotations, raising a combined $6.3 billion, one of the best hauls since the genomic bubble of 2000.

The venture capital funding environment also continued to improve, making 2014 one of the best years for the sector in living memory, according to the Pharma & Biotech 2014 in Review report published by EP Vantage, the editorial arm of market intelligence firm Evaluate.

Pharma & Biotech 2014 in Review Highlights:

Specialty pharma M&A frenzy, including the $66 billion purchase of Allergan, helped drive $212 billion in M&A transactions; eclipsing the $152 billion spent in 2009
IPO filings doubled from 44 in 2013 to 87 in 2014; total amount raised jumped from $2.9 billion to $6.3 billion
UK-based biopharma company, Circassia, broke IPO records with $332 million debut
Venture capital funding rose by 33 percent to $6.5 billion
FDA drug approvals rose 43 percent from 2013 with an impressive tally of 50 new drugs
Eli Lilly was the best performing big pharma stock in 2014 with shares up 35 percent
GlaxoSmithKline was the worst performing stock with shares down 15 percent in the year

“If people thought 2013 was a great year for the industry, 2014 defied logic and produced even better results with M&A activity reaching record highs, investors throwing money at the sector and the FDA approving a staggering 50 new drugs,” said Amy Brown, report author and EP Vantage reporter. “Early 2015 data indicate companies, bankers and venture capitalists have carried their appetite for the sector into the New Year. An estimated $3 billion was raised in January through secondary offerings alone. Whether this appetite is sustainable is another matter.”

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