DEALS ANALYSIS
Deals activity: North America deals decline; contract service agreements up
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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 type | Total deal value (US$m) | Total deal count | YoY change (volume) |
| Partnership | 471,044 | 17,999 | 22 |
| Venture Financing | 225,755 | 17,996 | 90 |
| Contract Service Agreement | 1,860 | 18,008 | 442 |
| Equity Offering | 892,677 | 16,249 | 135 |
| Licensing Agreement | 713,537 | 13,546 | 72 |
| Grant | 298,713 | 988,661 | 229 |
| Acquisition | 3,670,227 | 10,748 | -13 |
| Debt Offering | 1,760,864 | 7,838 | 12 |
| Asset Transaction | 430,495 | 6,063 | -48 |
| Private Equity | 505,248 | 2,500 | 62 |
| Merger | 173,278 | 679 | 1467 |
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.
