HealthLeaders Media June 13, 2019
Investment grade pharmaceutical companies continue to display a high capacity for M&A activity, according to a new Moody’s report.
Pharmaceutical mergers and acquisitions (M&A) activity is expected to rise across the industry thanks in part to high cash levels and moderate EBITDA, according to a Moody’s report released Thursday morning.
The primary drivers for pharmaceutical M&A is reduced pricing flexibility, regulatory challenges that could erode pricing, and patent cliffs between 2023 and 2026. Additionally, Moody’s cites the 2017 tax reform bill as providing more tax-friendly access to capital, which will drive M&A activity in the future.
Globally, more than 20 large pharmaceutical companies account for $195 billion in cash holdings as well as a median EBITDA of 2.8x, according to...
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