- For the first quarter of 2015, the amount of M&A activity in life sciences—$166.3 billion—exceeded the total amount for all of 2014.
- However, there were fewer actual deals made in Q1 2015, compared with Q1 2014.
- Pharma companies represented 82% of total deal values.
The intense increase in M&A activity and dollar volume was driven by several factors, including response to the consolidation of payers and providers, which has put pressure on drug makers to demonstrate value.
In addition, generic drug makers have been very aggressive in the M&A game. For example, during this period, Teva bought Auspex for $3.4 billion and there are currently multiple bids out there for Mylan and also for Perrigo. All things considered, it looks as if M&A activity will continue to accelerate as the year progresses. Stay tuned for a more in-depth look at this year's deals.