Cover Image
Market Research Report

PharmSource - M&A in the CMC Services Industry: Implications and Outlook

Published by GlobalData Product code 500066
Published Content info 36 Pages
Delivery time: 1-2 business days
Price
Back to Top
PharmSource - M&A in the CMC Services Industry: Implications and Outlook
Published: April 11, 2017 Content info: 36 Pages
Description

According to the latest PharmSource Trend Report, M&A in the CMC Services Industry: Implications and Outlook, in the three-year period 2014-2016 there were 101 acquisitions of CMC services companies, including dose and API manufacturing, packaging, logistics, formulation and analytical services. Nearly 80% of buyers of CMC services companies were strategic buyers, i.e., they were operating companies rather than investment firms. A number of CMC services companies changed hands coincident to the purchase of their parent company, while several CMOs were acquired by bio/pharma companies seeking to secure product supply.

The 101 transactions include 96 in which the CMC services business was the target, and 5 in which the services business was part of a larger entity that was acquired for reasons other than the services business. Only 25% of the targets had revenues greater than US$100 Million; most targets were small companies. Contrary to the popular impression, little industry consolidation has resulted from M&A.

CMC service providers, mostly manufacturers, acquired 31 manufacturing fa¬cilities and laboratories during the 2014-2016 period, mostly from global bio/ pharma companies. M&A has not resulted in significant consolidation in the CMC services industry. In each of the major service segments, less than 8% of companies and segment revenues were consolidated as a result of M&A.

Private equity firms have become buyers of last resort in most cases. M&A activity in the next several years will be impacted by some strong headwinds including higher interest rates, uncertain trade and investment policies, high valuation expectations and sizeable debt loads carried by some of the most active acquirers.

The report "PharmSource - M&A in the CMC Services Industry: Implications and Outlook" analyzes merger and acquisition (M&A) activity in the CMC services industry during the period 2014-2016 and assesses the implications for buyers and sellers of manufacturing, packaging, formulation and analytical services. Moreover, it analyzes how M&A in the bio/pharma contract services industry is likely to play out over the next two years. It examines which capabilities are likely to be most in demand by acquirers and which companies are most likely to be targets.

Scope

  • According to the latest PharmSource Trend Report, M&A in the CMC Services Industry: Implications and Outlook, in the three-year period 2014-2016 there were 101 acquisitions of CMC services companies, including dose and API manufacturing, packaging, logistics, formulation and analytical services. Only 25% of the targets had revenues greater than $100 million; most targets were small companies. Contrary to the popular impression, little industry consolidation has resulted from M&A.
  • M&A in the CMC Services Industry: Implications and Outlook analyzes how M&A in the bio/pharma contract services industry is likely to play out over the next two years. It examines which capabilities are likely to be most in demand by acquirers and which companies are most likely to be targets.

Reasons to buy

  • CMOs: market trends, strategic planning, competitive intelligence, performance benchmarking
  • Bio/Pharma: supplier performance benchmarking, market trends, competitive intelligence
  • Private equity and Stock analysts: target identification and analysis, portfolio company performance benchmarking
Table of Contents

Table of Contents

  • Executive Summary
  • Objectives and Methodology
  • Overview of M&A Activity 2014-2016
  • Segment Close-Ups of M&A Activity 2014-1026
  • Valuations
  • Facility Acquisitions
  • What It Means
  • The Outlook for M&A in CMC Services
  • Appendix

List of Tables

  • Table 1: CMC Services Businesses Acquired as Part of Larger Deals
  • Table 2: Company Acquisitions 2014-2016 by Target Service and Size
  • Table 3: Company Acquisitions 2014-2016 by Target Service and Ownership
  • Table 4: Company Acquisitions 2014-2016 by Target Market Scope and Size
  • Table 5: Most Active Acquirers 2014-2016
  • Table 6: Acquisitions of Dose Manufacturers
  • Table 7: Acquisitions of Biologics API Manufacturers
  • Table 8: Acquisitions of Small Molecule API Manufacturers
  • Table 9: Acquisitions of Analytical Services Providers
  • Table 10: Acquisitions of Formulation and CTM Providers
  • Table 11: Acquisitions of Packaging and Logistics Services Providers
  • Table 12: CMC Services Deals with Known Transaction Value and Multiples
  • Table 13: Facility Acquisitions by CMOs 2014-2016
  • Table 14: Number of Deals by Buyer and Target Service Offering
  • Table 15: Acquisitions by Private Equity Firms 2014-16
  • Table 16: Service Providers Owned 4+ Years by PE Firms
  • Table 17: Potential Targets: Biologics API Service Providers
  • Table 18: Potential Targets: Gene and Cell Therapy Providers

List of Figures

  • Figure 1: Company Acquisitions 2014-2016 by Target Service Offering
  • Figure 2: Company Acquisitions 2014-2016 by Target Revenues
  • Figure 3: Company Acquisitions 2014-2016 by Target Ownership
  • Figure 4: Acquisition Targets by Sophistication of
Back to Top