Strategic Insights

November 2013

How to Spend It: Buyout Targets Every Pharma Company Should Consider

  • Pages:41
  • Tables:11
  • Figures:18
  • Citations:13
  • Drugs:40
  • Interviews:0

Introduction:

The era of the biopharmaceutical mega-merger may be behind us, but with more than 25 acquisitions by the top 48 pharma companies so far in 2013, M&A remains high on the agenda. With many companies holding large cash reserves but facing slowing growth or sales decline, management teams make no secret of their search for bolt-on acquisitions. What is more difficult to determine is where to find value.

The appetite among investors for biotech stocks has driven up share prices of companies with promising pipelines. Yet forecasting sales of a clinical-stage drug is fraught with pitfalls. Different methodologies lead to wide variations in estimates even before considering the high risk inherent in the drug development process itself. Biopharmaceutical companies must balance numerous factors when determining the value of potential acquisitions, including cultural fit, long-term gains, and future market dynamics. In this report, we leverage Pharmaview data (with its unified forecasting methodology) and Decision Resources Group insight to evaluate companies that appear to hold strong potential at a reasonable price.

Questions Answered in This Report:

  *   Large companies in the industry continue to look toward acquisitions to shore up their pipelines, fill revenue gaps, and enter new markets. What are attractive potential acquisitions, based on our forecasts of ethical drug sales in the period 2013-2019? How do these forecasts relate to their current enterprise value as based on their publicly traded share price?

  *   Looking beyond the near-term forecast sales, what do these companies offer in terms of strategic approach and sustainable growth? How and in which markets are these companies aiming to succeed, where is their potential, and what are the strengths, weaknesses, opportunities, and threats of their approach?

Scope:

Markets covered: Global

Companies: top 48 in the industry ranked by annual ethical drug sales, and 117 with forecast product sales in the 2012-2019 period.

Forecast sales drawn from markets served by 1,700 drugs across 14 therapy areas, with a 7-year forecast window out to 2019.

Company SWOT and pipeline analyses and analysis of the competitive landscapes of relevant indications including cystic fibrosis, CML and NHL.


Search Reports

Mentioned in this report:

  • - AbbVie
  • - Ambrx
  • - Amgen
  • - Ariad Pharmaceuticals
  • - Astellas
  • - AstraZeneca
  • - Bayer Healthcare
  • - Bristol-Myers Squibb
  • - Celgene
  • - Compugen
  • - Eli Lilly
  • - FibroGen
  • - Furiex
  • - Galapagos
  • - Genentech/Roche
  • - Gilead
  • - GlaxoSmithKline
  • - Immunocore
  • - Johnson & Johnson
  • - Merck & Co.
  • - Merck KGaA
  • - Novartis
  • - Oncomed
  • - Onyx Pharmaceuticals
  • - Pfizer
  • - Prometheus
  • - Synageva
  • - Takeda
  • - TG Therapeutics
  • - Vertex
  • - Zafgen
Decision Resources Group brands include: