Plan on more pharma mega-mergers

Wall Street Journal

6 July 2019 - With a drought in new blockbuster drugs, generating growth has become a challenge.

The wave of giant pharmaceuticals deals might not be over just yet.

AbbVie stunned investors last month by agreeing to acquire Allergan for $63 billion. Earlier this year, Bristol-Myers Squibb announced that it would purchase Celgene for $74 billion, while Japanese drug giant Takeda Pharmaceutical purchased Shire for $58 billion last year.

AbbVie stock fell 16% when the deal was announced June 25 but has since rebounded nicely. That may be due to investors’ realisation that mega-mergers are a natural strategic choice for drug companies today.

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Michael Wonder

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Michael Wonder