Big Pharma Acquisitions To Gain Momentum

The pharmaceutical sector has proven more resilient than most in terms of M&A, corporate activity has continued apace despite the global financial turmoil and this is a trend that looks set to increase in the coming year. As CFW has previously highlighted, big drug companies have already been taking advantage of low valuations brought on by the frozen credit markets and falling share prices to snap up smaller-cap biotech and medical device companies. In 2009, however, activity will be driven to higher levels as pharmaceutical majors strive to reinvigorate their pipelines in anticipation of the expiration of patents on a number of their key drugs. Den White, chairman of the Association for Corporate Growth (ACG) and a partner at McDermott, Will & Emery, tells CFW that 'in healthcare and life sciences there are still some positive things happening. We have an ageing population and so favourable demographics continue to drive healthcare, and then on top of that we have the Obama administration, looking to roll out universal healthcare in the US.'

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