What will be worth watching this
year is the results of these M&As,
as cultures combine and new
strategies are engaged. Some of the
significant ones from 2014 include:
Actavis/Forest Laboratories &
Allergan, Merck/Cubist, Roche/In-terMune, Mallinckrodt/Questcor,
Nestle/Galderma. And of course,
we have to wonder about the
impact of the failed attempts with
Pfizer’s bid for AstraZeneca or AbbVie’s cancelled merger with Shire.
Already one of the biggest segments of the healthcare industry, the pharmaceutical
sector continues moving with greater numbers of mergers and acquisitions. While
we have seen movement up and down in rankings, and increases and decreases
in revenue, the total revenue of the Top 50 pharmaceutical companies remains
relatively the same at $821 billion in 2014, vs. $823 billion in 2013.
Bloomberg Business says “The
contest is driving premiums to
record highs, with buyers able to
take advantage of cheap financing
to raise additional cash for knockout bids. It’s also leading bidders to
take a chance on drugs that haven’t
yet been fully cleared for use,
such as Salix’s biggest selling drug
Xifaxan, which is yet to receive
secondary approval from the U.S.
Food and Drug Administration
as a treatment for irritable bowel
syndrome.” It points to an interest-
ing landscape for 2015.
Here’s a snapshot of the Top 50
(based on revenue) today. Companies are ranked by their 2014
revenue as furnished by their annual reports and publicly available
sources Edgar and Morningstar
stock information websites (figures
of non-U.S. companies were converted to U.S. dollars from various
currencies using end of the year
exchange rates for 2014 and 2013).