Wednesday 6 March 2013, Amsterdam
Our “Partnerships, Licensing, Investments and M&A Deals and Trends in Pharmaceuticals – Q4 2012” report is an essential source of data and trend analysis on partnerships, licensing, mergers and acquisitions (M&A) and financing in the pharmaceutical and healthcare market. The report provides detailed information on partnerships, licensing agreements, M&As, equity/debt offerings, private equity and venture financing transactions registered in the pharmaceutical and healthcare industry in Q4 2012. The report presents detailed comparative data on the number of deals and their value in the past five quarters subdivided into deal types, segments, and geographies. The report also offers information on the top venture capital and advisory firms in the pharmaceutical and healthcare industry.
Uncertainties In The Global Market Drive Value Of Pharma Deals Down In Q4 2012
Political and economic uncertainty lead to a fall in the value of M&A deals, including asset purchases, down in the pharmaceutical and healthcare industry in Q4 2012. Companies refrained from making acquisitions due to lack of confidence. The industry recoded deals worth $30.7 billion in Q4 2012, as compared to $31.5 billion in Q3 2012. However, on a year-on-year basis, the number of deals and deal values were higher in Q4 2012, when compared to 269 deals worth $26.1 billion in Q4 2011. The number of deals increased to 313 in Q4 2012 from 296 in Q3 2012.
The central nervous system therapeutics markets continued to account for the major part of deal activity with 26 deals worth $3.3 billion in Q4 2012. The oncology therapeutics market stood in second place with 25 deals worth $1.5 billion in Q4 2012.
Companies Enhance Their Bussiness Through Partnerships In Q4 2012
Companies in the pharmaceutical and healthcare industry entered into partnerships to enhance their business. The industry reported an increase in the number of partnership transactions and their values in Q4 2012 with 208 deals worth $4.3 billion, as compared to 196 deals worth $304.9m in Q3 2012. On a year-on-year basis, the number of deals increased and deal values decreased in Q4 2012, when compared to 200 deals worth $4.5 billion in Q4 2011.
Of the 208 deals reported in Q4 2012, 119 were co-development deals, 33 were joint venture deals, 32 were co-marketing deals and 24 were related to other category.
Bayer Pharma entering into a five-year, multi-target agreement worth $758m with Evotec AG, a biopharmaceutical company, for developing three clinical candidates for the treatment of endometriosis and Ablynx NV, a biopharmaceutical company, through its subsidiary, entering into an agreement worth $586.8m with Merck & Co, to develop and commercialize nanobody candidates directed at a voltage gated ion channel with the option to develop and commercialize a nanobody for a second target are some of the significant partnerships announced in Q4 2012.
Deal Values Of Licensing Deals Decrease In Q4 2012
The pharmaceutical and healthcare industry reported an increase in the number of licensing deals and a decrease in their values in Q4 2012 with 117 deals worth $4.8 billion, as compared to 111 deals worth $7 billion in Q3 2012. Though licensing deals seemed to be affordable to companies, they did not invest in them owing to the current uncertain market conditions. On a year-on-year basis, the number of deals and deal values decreased in Q4 2012, when compared with 119 deals worth $5.3 billion in Q4 2011. The oncology therapeutics market recorded much of the licensing activity with 25 licensing deals worth $628.4m in Q4 2012. In Q4 2012, to receive rights to products, companies paid $659m as upfront fees and agreed to $3.6 billion as milestone fees.
In licensing by phase, products in Marketed phase recorded 78 deals, accounting for 24% of the total deals from Q4 2011 to Q4 2012. In second place, products in Pre-Clinical phase accounted for 21% of the deals. In deal values, Pre-Clinical products accounted for 33% of the deal value. In second place were products in Phase II with $3.5 billion, which accounted for 23% of the deal value.
Janssen Biotech, Inc. (formerly Centocor Ortho Biotech Inc.), a subsidiary of Johnson & Johnson (J&J), entering into a licensing agreement worth $945m with Astellas Pharma Inc., for ASP015K, an oral, small molecule Janus Kinase (JAK) inhibitor and Pfizer Inc. entering into a licensing agreement worth $515m with Halozyme Therapeutics, Inc. (HALO), a biopharmaceutical company, for developing and commercializing products combining proprietary Pfizer biologics with Halozyme's Enhanze technology, are two of high value licensing deals reported in Q4 2012.
Start-up Stage Companies Secure Much Of The Investments In Q4 2012
The venture capital market reported an increase in the number of deals and deal values in Q4 2012. The market reported 256 deals worth $2.2 billion in Q4 2012, as compared to 246 deals worth $1.9 billion in Q3 2012. On a year-on-year basis, the number of deals and deal values increased in Q4 2012, when compared to 245 deals worth $2 billion in Q4 2011.
Start-up stage companies secured much of the investment in Q4 2012. The market recorded 156 start-up stage deals worth $1.1 billion, as compared to 143 deals worth $744.1m in Q3 2012. Besides, there were 70 growth/ expansion stage financing deals worth $740.1m, 18 later stage financing deals worth $375.5m and 12 seed stage financing deals worth $15.4m.
New Enterprise Associates topped the list of venture financing firms by participating in 19 transactions worth $618.6m in the last four quarters (Q1 2012 – Q4 2012).
North America Reported An Increase In The Number Of Deals
North America reported an increase in the number of deals and a decrease in deal values in Q4 2012. The region recorded 797 deals worth $60.1 billlion in Q4 2012, as compared to 764 deals worth $64.1 bilion in Q3 2012, reflecting 4% increase in the number of deals and 6% decrease in deal values. On a year-on-year basis, the number of deals increased and deal values decreased in Q4 2012, when compared to 726 deals worth $63.1 billion in Q4 2011.
Europe recorded an increase in the number of deals in Q4 2012 with 259 deals, as compared to 271 deals in Q3 2012. However, deal values decreased to $13.6 billion in Q4 2012 from $17 billion in Q3 2012. On a year-on-year basis, the number of deals decreased and the deal values increased in Q4 2012, when compared to 271 deals worth $12.9 billion in Q4 2011.
Asia Pacific recorded a decrease in deal activity in Q4 2012. The region reported 191 deals worth $10 billion in Q3 2012, as compared to 214 deals worth $13.5 billion in Q3 2012.
