DEALS ANALYSIS

Deals activity: North America deals decline; contract service agreements up

Powered by 

Deals activity by geography

Pharma industry deals, as captured by GlobalData’s Pharmaceuticals Intelligence Centre, are up year-on-year (YoY) across all regions.

North America is leading in terms of deal value, but recorded the lowest YoY growth in deals volume at -42%. South and Central America, ranking last in terms of deal value, has seen the largest YoY change, with deal volumes increasing by 47%.

The volume of deals recorded by GlobalData also increased YoY in Asia-Pacific (32%), Europe (18%) and Middle East and Africa (33%).

Deals activity by type

Deal typeTotal deal value (US$m)Total deal countYoY change (volume) 
Partnership471,04417,99922
Venture Financing225,75517,99690
Contract Service Agreement1,86018,008442
Equity Offering892,67716,249135
Licensing Agreement713,53713,54672
Grant298,713988,661229
Acquisition3,670,22710,748-13
Debt Offering1,760,8647,83812
Asset Transaction430,4956,063-48
Private Equity505,2482,50062
Merger173,2786791467

A breakdown of deals by type and volume shows a 1467% growth in mergers YoY, while acquisitions are down 13%, partnerships grew with 22% change YoY and asset transactions are down -48%. Financing deals have increased across some types, with venture financing up 90% YoY, equity offerings up 135% and debt offerings up 12%.

Private equity has seen 62% growth in number of deals YoY, while the number of grants recorded is up 229%. The number of contract service agreements recorded by GlobalData is up 442% YoY.

Deals activity by therapy area

The most notable development apparent in GlobalData’s analysis of pharma industry deals by therapy area is the increase of deals in the field of infectious diseases. After remaining relatively steady over the past ten years, the number of recorded deals in infectious diseases increased significantly in 2020 to date, most likely due to the impact of the Covid-19 pandemic on activity in the sector.

Note: All numbers as of 15 February 2021. Deals captured by GlobalData cover M&As, strategic alliances, various types of financing and contract service agreements.

For more insight and data, visit GlobalData's Pharmaceuticals Intelligence Centre.

Latest deals in brief

Sandoz signs $500m deal to acquire GSK’s cephalosporin antibiotics business

Novartis division Sandoz has signed a $500m agreement to acquire GSK’s cephalosporin antibiotics business to strengthen its global position in antibiotics. The deal consists of the global rights to the Zinnat, Zinacef and Fortum brands in more than 100 markets.

Molecular Templates and BMS partner for cancer therapies development

Molecular Templates (MTEM) has entered a collaboration with Bristol Myers Squibb (BMS) to discover and develop multiple novel therapies. These therapies will be designed for specific oncology targets. The worldwide strategic research partnership will work on discovering novel molecules using MTEM’s next-generation engineered toxin body platform.

AbbVie and Caribou enter $340m deal to develop CAR-T cell therapies

AbbVie has signed a collaboration and licensing agreement with Caribou Biosciences for the research and development of chimeric antigen receptor (CAR)-T cell therapeutics. Even though allogeneic, ‘off-the-shelf’ CAR-T cell therapies demonstrated early promise in some cancer patients and there exists a need for overcoming the allogeneic CAR-T cell rejection by the host immune system.

Nautilus Biotechnology and Arya III sign business combination agreement

Proteomics company Nautilus Biotechnology and a special purpose acquisition company Arya Sciences Acquisition Corp III have signed a definitive business combination agreement. On closing of the deal, the combined company will reportedly be listed on Nasdaq under the ticker symbol ‘NAUT’.

Novartis to support Pfizer-BioNTech’s Covid-19 vaccine production

Novartis has signed an initial agreement to support the production of Pfizer and BioNTech’s Covid-19 vaccine by leveraging its manufacturing capacity and capabilities to fight the Covid-19 pandemic. The company will use its aseptic manufacturing facilities at its site in Stein, Switzerland for the purpose.

Takeda sells select products portfolio to Hypera Pharma

Japanese company Takeda Pharmaceutical has completed the previously announced sale of select over-the-counter (OTC) and non-core assets in Latin America to Hypera Pharma for $825m. The deal was initially signed last March for the sale of OTC and prescription pharmaceutical products that are sold in Brazil, Mexico and other South American, Central American and Caribbean countries, which are part of its Growth & Emerging Markets Business Unit.

Go to article: Home | Getting the skinny on generics labellingGo to article: In this issueGo to article: ContentsGo to article: HOF Sonderanlagenbau Company Insight Go to article: HOF SonderanlagenbauGo to article: BriefingGo to article: Industry newsGo to article: The pharma industry briefingGo to article: Covid-19 executive briefing by GlobalDataGo to article: Mimotopes Company Insight Go to article: MimotopesGo to article: The Solubility companyGo to article: The Solubility Company Insight Go to article: CommentGo to article: Market access of orphan designated therapies at riskGo to article: Lodo Therapeutics’ AI-driven natural drug discovery platformGo to article: Concert Pharmaceuticals discontinues schizophrenia drug after trial failureGo to article: Medical cannabis in Europe: a compelling opportunityGo to article: Exploring the pharma deals outlook in 2021Go to article: In DepthGo to article: Skinny labelling of generics: the beginning of the end for this practice?Go to article: Charting the choppy history of ‘magic bullet’ antibody-drug conjugates Go to article: How a sleeping drug awakened a patient with akinetic mutismGo to article: Breast cancer research: addressing the pre-menopausal problemGo to article: Beyond the lung: treating the GI symptoms of Covid-19Go to article: Immortal cells and informed consent: the legacy of Henrietta LacksGo to article: How radiopharmaceuticals are helping fight cancer with Fusion Go to article: Competition heats up as new HIV prevention drug shows promise Go to article: BaxterGo to article: ACG WorldwideGo to article: In DataGo to article: Inside the dealGo to article: Deals analysisGo to article: The pharma industry key listGo to article: Global markets and indicesGo to article:  Macro-economic indicatorsGo to article: Macro-economic indicators (page 2)Go to article: EventsGo to article: Next issue