Big Pharma Mega-Mergers 1995-2014

Introduction

Mega-mergers (defined here as M&A events with deal sizes >$5bn) have been a long-term strategic feature of the pharmaceutical industry and have played a key role in shaping the structure and composition of today's leading companies. Is it possible to quantify exactly how much of Big Pharma's sales growth has been driven by M&A versus how much has been self-produced through organic growth?

Scope

*This report analyzes 22 large scale M&A events that have occurred to date within the Big Pharma peer set over the period 1995-2014

*Datamonitor has identified two distinct classes of M&A event: small/fast growth acquisitions and big/slow growth acquisitions.

*Using these two classes Datamonitor has identified three company-level M&A growth strategies that can be attributed to each of the Big Pharma players:

*In addition to the impact of mega-M&A on sales performance the report also assesses the financial implications associated with different M&A strategies

Highlights

Twenty-two large-scale M&A events (defined as those valued above $5 billion) have occurred within Big Pharma over 19952014. Furthermore, every Big Pharma player has undertaken large scale M&A activity at some stage over this period, thereby illustrating it as an ingrained peer set strategy.

Over the period 19952014, Big Pharma prescription pharmaceutical sales are forecast to increase from $84 billion to $381 billion, with absolute growth of +$187 billion provided by M&A activity. In other words, two-thirds (c.63%) of Big Pharma sales expansion over a 20-year period will be driven entirely by M&A activity.

Reasons to Purchase

*Assess how much of Big Pharma's sales growth over 1995-2014 will be driven by M&A versus how much will be self-produced through organic growth.

*Assess how Datamonitor has classified each of the current Big Pharma players by their dominant M&A growth strategy

*Analyze the M&A and organic sales growth profiles for each Big Pharma company over the period 1995-2014


Report Highlights

[Studien Infos ausblenden]

List of Tables
Table 1: Company coverage 3
Table 2: Big Pharma M&A timeline and overview, 1995-2014 13
Table 3: Big Pharma M&A timeline and overview, 1995-2014 31
Table 4: Example of RootCo ( DestCo growth 108
Table 5: Exchange rates, 2009 111

List of Figures
Figure 1: The PharmaVitae Explorer 4
Figure 2: Big Pharma Rx pharmaceutical sales ($m) by source, 1995-2014 7
Figure 3: Big Pharma Rx pharmaceutical absolute sales growth ($m) by source, 1995-2014 8
Figure 4: Rx sales CAGR (%) for total market & Big Pharma peer set, 1995-2008 & 1995-2014 9
Figure 5: Big Pharma share (%)of total Rx pharmaceutical market by organic/M&A sales, 1995-2008 10
Figure 6: Lineage of companies with one round of M&A activity 11
Figure 7: Lineage of companies with two rounds of M&A activity 12
Figure 8: Lineage of companies with more than two rounds of M&A activity 12
Figure 9: Scatter chart analysis of acquired companies, 1995-2014 14
Figure 10: Big Pharma M&A events classified by % relative size of target company by acquiring company & % CAGR of target company (five years post-M&A) 16
Figure 11: Re-based absolute growth & total Rx revenue performance of Centocor, Knoll and Genentech, 13/19-year post-M&A period ($m) 18
Figure 12: Grouped Big Pharma M&A events classified by % relative size of target company by acquiring company & % CAGR of target company (5 years post-M&A) 19
Figure 13: Global Lipitor and Crestor sales ($m), 2001-14 20
Figure 14: Global sales ($m) of statins (C10A1) and oncology-mAbs (L1X3), 2001-14 21
Figure 15: Big Pharma blockbuster Rx sales ($m), 2001-14 24
Figure 16: Classification of Big Pharma companies by M&A growth strategy 25
Figure 17: Big Pharma companies classified by M&A growth strategy (by % CAGR of target company [five years post-M&A] and % of total growth due to M&A) 26
Figure 18: Big Pharma Rx pharmaceutical sales by source ($m), 1995-2014 32
Figure 19: Big Pharma Rx pharmaceutical absolute sales growth by source ($m), 1995-2014 33
Figure 20: Rx sales CAGR (%) for total market & Big Pharma peer set, 1995-2008 & 1995-2014 34
Figure 21: Big Pharma share (%) of total Rx pharmaceutical market by organic and M&A sales, 1995-2008 35
Figure 22: Big Pharma blockbuster Rx sales ($m), 2001-14 36
Figure 23: Big Pharma absolute Rx sales growth ($m) by source and time period, 1995-2014 38
Figure 24: Big Pharma year-on-year absolute Rx sales growth ($m) by source, 1996-2014 39
Figure 25: Percentage of absolute Rx sales growth by source, 1995-2014 (%) 40
Figure 26: Market share (%) analysis by Big Pharma company, 1995-2008 42
Figure 27: Classification of Big Pharma companies by M&A growth strategy 44
Figure 28: Roche absolute growth ($m) by organic/M&A, 1995-2014 45
Figure 29: Roche Rx revenues by acquired company, 1995-2014 ($m) 46
Figure 30: Roche year-on-year absolute growth by organic/M&A, 1995-2014 ($m) 47
Figure 31: Roche acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 48
Figure 32: Johnson & Johnson absolute growth ($m) by organic/M&A, 1995-2014 49
Figure 33: Johnson & Johnson Rx revenues by acquired company, 1995-2014 ($m) 50
Figure 34: Johnson & Johnson year-on-year absolute growth ($m) by organic/M&A, 1995-2014 51
Figure 35: Johnson & Johnson acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 52
Figure 36: Abbott absolute growth by organic/M&A, 1995-2014 ($m) 53
Figure 37: Abbott Rx revenues by acquired company ($m), 1995-2014 54
Figure 38: Abbott year-on-year absolute growth ($m) by organic/M&A, 1995-2014 55
Figure 39: Abbott acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 56
Figure 40: Merck & Co. absolute growth ($m) by organic/M&A, 1995-2014 57
Figure 41: Merck & Co. Rx revenues ($m) by acquired company, 1995-2014 58
Figure 42: Merck & Co. year-on-year absolute growth ($m) by organic/M&A, 1995-2014 59
Figure 43: Merck & Co. acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 60
Figure 44: GlaxoSmithKline absolute growth by organic/M&A, 1995-2014 ($m) 61
Figure 45: GlaxoSmithKline Rx revenues ($m) by acquired company, 1995-2014 63
Figure 46: GlaxoSmithKline year-on-year absolute growth ($m) by organic/M&A, 1995-2014 64
Figure 47: GlaxoSmithKline acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 65
Figure 48: Sanofi-Aventis absolute growth ($m) by organic/M&A, 1995-2014 66
Figure 49: Sanofi-Aventis Rx revenues ($m) by acquired company, 1995-2014 67
Figure 50: Sanofi-Aventis year-on-year absolute growth ($m) by organic/M&A, 1995-2014 68
Figure 51: Sanofi-Aventis acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 69
Figure 52: AstraZeneca absolute growth by organic/M&A, 1995-2014 ($m) 70
Figure 53: AstraZeneca Rx revenues ($m) by acquired company, 1995-2014 71
Figure 54: AstraZeneca year-on-year absolute growth ($m) by organic/M&A, 1995-2014 72
Figure 55: AstraZeneca acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 73
Figure 56: Bayer-Schering absolute growth ($m) by organic/M&A, 1995-2014 74
Figure 57: Bayer-Schering Rx revenues ($m) by acquired company, 1995-2014 75
Figure 58: Bayer-Schering year-on-year absolute growth ($m) by organic/M&A, 1995-2014 76
Figure 59: Bayer-Schering acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 77
Figure 60: Pfizer absolute growth ($m) by organic/M&A, 1995-2014 78
Figure 61: Pfizer Rx revenues ($m) by acquired company, 1995-2014 79
Figure 62: Pfizer year-on-year absolute growth ($m) by organic/M&A, 1995-2014 81
Figure 63: Pfizer acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 82
Figure 64: Novartis absolute growth ($m) by organic/M&A, 1995-2014 85
Figure 65: Novartis Rx revenues ($m) by acquired company, 1995-2014 86
Figure 66: Novartis year-on-year absolute growth ($m) by organic/M&A, 1995-2014 87
Figure 67: Novartis acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 88
Figure 68: Eli Lilly absolute growth ($m) by organic/M&A, 1995-2014 89
Figure 69: Eli Lilly Rx revenues ($m) by acquired company, 1995-2014 90
Figure 70: Eli Lilly year-on-year absolute growth by organic/M&A, 1995-2014 ($m) 91
Figure 71: Eli Lilly acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 92
Figure 72: Bristol-Myers Squibb absolute growth by organic/M&A, 1995-2014 ($m) 93
Figure 73: Bristol-Myers Squibb Rx revenues by acquired company, 1995-2014 ($m) 94
Figure 74: Bristol-Myers Squibb year-on-year absolute growth by organic/M&A, 1995-2014 ($m) 95
Figure 75: Bristol-Myers Squibb acquired company Rx revenues rebased as % of organic Rx revenues at year of acquisition 96
Figure 76: Return on capital employed formula 99
Figure 77: % EBIT / total revenues and % operating costs / total revenues, 2004-08 (weighted three-company average for Growth, Scale and Organic company sets) 100
Figure 78: Total revenues / capital employed and % goodwill & intangibles / total revenues, 2004-08 (weighted three-company average for Growth, Scale and Organic company sets) 101
Figure 79: EBIT / capital employed build-up from EBIT margin and capital turnover, 2004-08 (weighted three-company average for Growth, Scale and Organic company sets) 103
Figure 80: Market capitalization (indexed Jan 2005), 2005-08 (weighted three-company average for Growth, Scale and Organic company sets 2005-09) 104
Figure 81: Evolutionary timeline for theoretical company 'RootCo' 106
Figure 82: Theoretical sales performance for RootCo + Targ1Co & Targ2Co 107
Figure 83: Disaggregation of sales growth in organic and M&A components 109
[Tabellenverzeichnis ausblenden]