The days of mega deals in medtech will continue, according to one M&A expert, but the overall number of acquisitions of all sizes may dip—for a surprising reason.
Transactions in the medical device sector had the greatest deal value—$35.9 billion—in the second quarter among pharmaceutical and life sciences industries. That’s one of the insights from the just-released PwC quarterly publication,”Global Pharma & Life Sciences Deals Insights Q2 2016 Update.”
Of course, much of that value came courtesy of Abbott’s planned $30 billion acquisition of St. Jude Medical. The Abbott-St. Jude deal followed several other multi-billion dollar transactions in recent years: Zimmer and Biomet, BD and CareFusion, Medtronic and Covidien, Johnson & Johnson and Synthes.
Dimitri Drone, partner, Global Pharmaceutical and Life Sciences Leader in PwC’s Deals Practice, and one of the authors of the report, told MD+DI that he thinks massive buys in the medtech industry will keep occurring sporadically. “They’re more the exception than the rule . . . Would I expect that to continue? I do, because I think that has become part of the industry’s evolution.”
By Marie Thibault | MD&DI