According to EY’s ‘Firepower Index and Growth Gap Report 2016’, the figure sets a new record for the industry and far exceeds the previous record, set in 2014, of just over US$200bn in aggregate value. Much of this activity was reportedly driven by companies attempting to create more focused businesses and close persistent revenue ‘growth gaps’.
Brisk pace set to continue in 2016
As for 2016, EY’s Global Life Sciences Leader Glen Giovannetti commented: ‘While we can’t predict more large transformational deals over US$100bn in 2016, we do expect a continued brisk pace for acquisitions and a continuation of the robust divestiture environment, as companies seek to focus on and gain scale in their chosen therapeutic areas. Three times as many companies now possess at least US$3bn in firepower than a year ago, meaning more competition for targets as well as a longer list of potential acquirers for divestitures. Big pharma, in particular, should capitalize on its dominant share of firepower and continue to pursue aggressive but strategically sound deals to fill its portfolio and pipeline gaps.’ Source: EY
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