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Funding Patterns in the Global Pharma and Biotech Industry

Funding Patterns in the Global Pharma and Biotech Industry

Key Trends in the Pharma and Biotech Industry

Pharma and biotech industry stock market indices have outperformed those of other industries in the study period.

Profitability is reducing in large pharmaceuticals companies.

Patent expiry and revenue loss in pharma and biotech companies.

Government efforts to contain drug prices.

Increasing market demand for drugs.

Declining research & development (R&D) by large pharma companies.

Key Findings

The pharma and biotech industry witnessed a decline in the volume of both private equity (PE) and venture capital (VC) deals. This is in tune with the overall decline in deals in healthcare in the study period.

The PE deal volume in the pharmaceuticals sector declined steadily during 2010–2014, while the biotechnology sector witnessed an increase in deal volume during 2010–2013 and a slight decline in 2014.

The initial public offering (IPO) market for the pharma and biotech industry has experienced steady growth post-2012.

Depleting pipeline and increased cost pressures have made mergers and acquisitions (M&As) a lifeline for strategic growth for leading participants of the pharmaceuticals sector.

About this report

This research service analyzes the various PEVC and merger and acquisition deals in the pharmaceuticals and biotechnology industry. The deals are analyzed based on their number and average value. Trends are also observed based on the geographic region and buyer types. The study delves into the nature of cross-border deals and takes into account various deal multiples such as enterprise value, percent sought, and stock premium rise of the target company.


  • Executive Summary
  • Key Terms Used in the Study
  • Introduction
    • Research Objectives and Scope
    • Research Methodology
  • Key Trends in the Pharma and Biotech Industry
    • Pharma and Biotech Industry-Stock Indices Performance
      • Table Pharma and Biotech Industry: Performance of HC Stocks, Global, 2010-2014
    • Pharma and Biotech Industry-Reducing Profitability
      • Table Pharmaceuticals Sector: Year-on-Year Net Income Change, Global, 2011-2014
      • Table Pharmaceuticals Sector: Year-on-Year Revenue Change, Global, 2011-2014
    • Pharma and Biotech Industry-Patent Expiry and Revenue Loss
      • Table Pharma and Biotech Industry: Expected List of Lost Patents, Global, 2015
    • Pharma and Biotech Industry-Efforts to Contain Prices
    • Pharma and Biotech Industry-Increasing Market Demand
    • Pharma and Biotech Industry-Declining R&D
      • Table Pharmaceuticals Sector: R&D-to-Sales Ratio, Global, 2008 and 2013
  • Key PEVC Statistics
    • PEVC Deal Trends by Volume and Value
    • Volume and Value of PE Deal by Sector
      • Table Pharma and Biotech Industry: Volume and Value of PE Deals by Sector, Global, 2010-2014
  • VC Deal-Key Metrics
    • VC Deal Trends by Sector
      • Table Pharma and Biotech Industry: Volume and Value of VC Deals by Sector, Global, 2010-2014
    • Pharmaceuticals Sector-Snapshot of VC Investment Stages
    • Biotechnology Sector-Snapshot of VC Investment Stages
  • PEVC Geographic Analysis
    • PEVC Deal Analysis in the North American Region
    • PEVC Deal Analysis in the European Region
    • PEVC Deal Analysis in the APAC Region
  • Exit Transaction Analysis
    • PEVC Exits Through IPO
    • PEVC Exits through M&A
  • M&A Transactions
    • Pharmaceuticals Sector-M&A Analysis
    • Biotechnology Sector-M&A Analysis
  • Geographic Analysis of M&A Deals
    • M&A Deal Volume Analysis across Geographies
      • Table Pharma and Biotech Industry: Volume of M&A Deals by Geography, Global, 2010-2014
    • M&A Deal Value Share Analysis across Geographies
      • Table Pharma and Biotech Industry: Value of M&A Deals Share by Geography, Global, 2010-2014
  • Cross-border Deal Analysis-Buyer's Perspective for Asia-Pacific, Europe, and North America
    • M&A Trends of Cross-border Deals-Asia-Pacific Buyers
      • Table Pharma and Biotech Industry: Percent of Deal Volume by Asia-Pacific Buyer, Global, 2010-2014
    • M&A Trends of Cross-border Deals-European Buyers
      • Table Pharma and Biotech Industry: Percent of Deal Volume by European Buyer, Global, 2010-2014
    • M&A Trends of Cross-border Deals-North American Buyers
      • Table Pharma and Biotech Industry: Percent of Deal Volume by North American Buyer, Global, 2010-2014
  • Type of Integration
    • M&A Trends in the Pharmaceuticals Sector by Type of Integration
      • Table Pharmaceuticals Sector: Deal Volume by Type of Buyer, Global, 2010-2014
    • M&A Trends in the Biotechnology Sector by Type of Integration
      • Table Biotechnology Sector: Deal Volume by Type of Buyer, Global, 2010-2014
  • Conclusions
    • Four Big Conclusions

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