Life Sciences Update : First Quarter 2011
Deloitte Financial Advisory Services
This quarter’s Life Sciences Update, produced by Deloitte Financial Advisory Services, summarizes the most recent transactions along with information on the most active buyers, current transaction valuation multiples and an overview of the public market’s perception of the industry.
This quarter’s highlights
All European countries face the same challenge of cost pressure, which has been accelerated by the recent increase in public debt. Healthcare reforms have followed rapidly for example to decrease prices (often drastically such as in Germany and Greece) or to increase insurance premiums (such as in Germany, France and Ireland). Even more reforms are scheduled for 2011 and 2012 such as in Poland and the Netherlands. The spill-over of this cost pressure to the margins of the pharmaceutical industry will remain a driving factor for mergers and acquisitions.
European life sciences M&A deal volume and median multiples remained approximately stable in the LTM compared to 2010. During the last twelve months (LTM), the following market evolutions have been observed:
- 198 transactions have been announced, compared to 205 transactions for the year 2010;
- 82 private equity backed transactions have been announced in the LTM against 84 in 2010;
- Median transaction multiples increased from 13,0x EBITDA ratio in 2010 to 13,5x EBITDA ratio during the LTM.
Download the Life Sciences Update below.