The M&A Numbers

M&As have become as essential as R&D to pharma's future, and this year is no exception. According to life-science investment bank Young & Partners (Y&P), 19 major deals have been inked so far, worth a total of $22.7 billion, indicating that 2008 is on track to match 2007's in volume (44 M&As), though not its dollar value ($79.5 billion).

Only six deals have hit blockbuster status—the biggest by far Takeda's $8.8 billion grab of Millennium. In fact, '08 is shaping up as the year the Japanese drug industry makes its move into the global market. Five of the top 10 deals were made by Japanese firms, shoring up shop at home or placing stakes in the US.

Dollar Value of Worldwide Biotechnology Acquisition
For the rest of '08, Y&P predicts a slight drop-off in M&As, given a teetering global economy and the unknowns about healthcare policies with the Presidential election looming. Expect the year's volume to come in under the five-year average of $66.5 billion.