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
|PharmSource - M&A in the CMC Services Industry: Implications and Outlook|
|Published: April 11, 2017||Content info: 36 Pages||
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.