Alexander Smith’s Profile
Biotech merger volumes down but deals numbers booming
An interesting snippet from the weekly Thomson Reuters Investment Banking Scorecard.
While the value of M&A deals in the biotech sector has fallen sharply year-on-year — largely because of the disproportionate impact of Roche’s takeover of Genentech last year — the number of deals done is actually up, by 15 percent.
Bristol-Myers Squibb’s $1.9 billion acquisition of Medarex has lifted the volume to $5.3 billion for year-to-date 2009.
That’s a 90 percent decrease from 2008 levels.
But if you exclude Roche’s $46.7 billion acquisition of Genentech, biotech M&A volume is down just 22 percent over 2008 levels.
More good news for JP Morgan and Goldman Sachs who top the advisor rankings in the sector.