Despite active M&A activity by conventional standards, 2016 was a fairly quiet year compared to 2015. The U.S. government cracked down on inversion-based deal making that drove so much of the mega M&A activity in 2015. For instance, Pfizer expected to save about $123 million in taxes after merging with Ireland-based Allergan. It would have been the largest merger in pharmaceutical industry history.
When the law changed, the Pfizer and Allergan deal immediately fell apart as did other inversion-based deals. Instead, 2016 M&A activity focused on strategically managing product portfolios and leading companies buying the innovation needed for growth.
What will 2017 hold? With the incoming Trump administration it is hard to tell. Cash repatriation policies mentioned during the campaign might bring a great deal of off-shore money back to the U.S. and spark another round of M&A mania.
The following is some of the most notable activity from 2016. Happy 2017!
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- Pharma Letter
- “Pharma Year in Review,” C&EN
- “Baxter Buys Claris’ Generic Injectables Subsidiary for $625M,” GEN, December 15, 2016
- “AbbVie to Expand Oncology Presence Through Acquisition of Stemcentrx and its Novel, Late-Stage Rova-T Compound for Small Cell Lung Cancer,” April 28, 2016, Abbvie press release
- “Pharma M&A Market: Latest Challenges and Opportunities,” Peter Young, Pharmaceutical Executive, December 14, 2016
- “Review of the year 2016: M&A,” George Underwood, Pharma Times, December 2016
- “Trump’s corporate tax holiday could spur pharma M&A,” Carl O’Donnell, Reuters, December 6, 2016