Article
M&A Activity Shows Early Signs of Recovery in Q3 2024
IQVIA Pharma Deals
Dec 12, 2024
Download

After a steady start to the year, there was hope that merger and acquisition (M&A) activity in the life sciences sector would start to pick up during the second half of 2024. Despite sustained headwinds, there was a slight decline in the number of M&A deals announced in Q3 2024, with 93 deals signed compared to 96 in Q3 2023. Notably, deal values were up significantly compared to the same period last year, as companies were willing to commit large sums of cash to acquire companies with established, de-risked assets that complemented their existing portfolios.

M&A volume remains steady, yet values are on the rise.  With dealmakers starting to gain confidence within the current market conditions, the number of M&A deals announced (defined here as Mergers, Business Acquisitions and Divestments, signed but not necessarily completed) was down by only 3% in Q3 2024 compared to Q3 2023 (Figure 1). Despite the aggregate total value decreasing by 18%, the mean total value of all M&A deals signed in Q3 2024 increased by 7% compared with the same period in 2023 (Table 1). Furthermore, the median deal value, which removes the skewing effects of any outliers, increased by a staggering 162% in Q3 2024 compared to Q3 2023.

Interestingly, eight M&A deals exceeded US$1 billion in value in Q3 2024, compared with only six deals in Q1 2023. Of the top 10 M&A deals by total deal value, three deals in Q3 2024 involved a private equity firm, with the US$3.8 billion purchase of Baxter's kidney care unit by The Carlyle Group topping the list. In the biopharma sector, companies continued to favor modestly priced bolt-on acquisitions as opposed to transformational M&A, as the increased scrutiny from regulators poses a deterrence to dealmakers. Instead, companies continued to implement deal structures involving milestone payments or contingent value.

Unlock exclusive insights into Q3 2024 M&A trends in the life sciences sector! Download our comprehensive report to explore key statistics, notable biopharma transactions, private equity involvement, and strategic drivers behind the deals. Stay informed and ahead in the industry with detailed analysis and expert perspectives.

 

Related solutions

Contact Us