Spec Pharma Industry Update May 2011

The link below is an update on the specialty pharmaceutical market we thought you may find of interest.  With the announcements over the past few days of three new spec pharma deals (Prometheus/Nestle, Sanitas/Valeant, and Nycomed/Takeda) it looks as though this report is timely.  Market conditions are ripe for M&A and it appears to be a good time to be a seller in the spec pharma sector

Below are a few highlights touched upon in greater detail within the report:

–   2011 is shaping up to be a significant year for the spec pharma industry based on the large number of companies that have been merged or acquired

–   Following decreased M&A activity in specialty pharma in 2009, the sector rebounded last year and is expected to continue to grow as middle market and large-cap pharma companies remain well capitalized and seek to expand their pipelines, commercial reach and/or revenues

–   On a geographic  basis there appears to be an increasing focus on emerging markets by U.S. and European specialty pharma companies as well as on U.S. specialty pharma companies by Japanese and European buyers

–   Due to high cash on balance sheet, acquiring companies have shown ability and willingness to pay a premium for sellers with quality assets and good businesses

–   It is estimated that spending on specialty pharma will advance to more than 40 percent of total drug spending in the next two decades

Specialty Pharma Industry Update May 2011

Please let us know if you have questions or would like to discuss any corporate strategy or business development initiatives.  There have been a number of recent spec pharma M&A transactions and the market remains active.  We look forward to connecting soon and a productive second half of 2011.


Bourne Partners Team


About Bourne Partners

As a healthcare-focused merchant bank, Bourne Partners provides financial advisory, direct investment, alternative assets and management consulting services to our client-partners. We play an active role in helping businesses grow by creating long-term, profitable relationships that extend beyond single transactions. It is our focus on relationships and long-term results that has yielded us an impeccable track record of client satisfaction . Our direct and indirect investments in sector-leading companies – often through our relationships with top-tier Private Equity funds – allow us to learn about the best-of-the-best from the inside and apply that knowledge to the companies we serve. At Bourne Partners, we operate within a specific set of core boundaries: integrity, accountability, teamwork, loyalty and commitment are the driving forces behind everything we do.
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