Global M&A activity in the biopharmaceutical industry
skyrocketed in 2014 and 2015, eclipsing US$200 billion in deal
value each year and prompting EY to declare such elevated activity
to be the "new normal" in the industry. After
another strong year in 2016, big pharma companies now appear poised
to carry this trend into 2017. In fact, according to EY's M&A Outlook and Firepower Report 2017 (the
Firepower Report), both the pressures on big
pharmaceutical companies to pursue inorganic growth, and the
ability of these companies to execute strategic acquisitions, are
higher than they have been at any point over the past several
years.
Findings in Firepower Report
The Firepower Report predicts that pricing pressure will be a
key driver of M&A activity as payers around the world push for
lower drug costs. This pressure, enhanced by the establishment of
biosimilars in developed markets and overcrowding in increasingly
competitive therapeutic fields, is steadily eroding
