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Biotech / Medical : Biotechnology Value Fund, L.P. -- Ignore unavailable to you. Want to Upgrade?

To: scaram(o)uche who wrote (3400)	2/5/2003 11:43:55 AM
From: keokalani'nui	Read Replies (1) \| Respond to of 4974

02 Pharmaceutical M&As +12% Versus 01, Deal Values Down - Survey Wednesday February 5, 6:38 am ET Edited Press Release LONDON -(Dow Jones)- PricewaterhouseCoopers said Wednesday that in 2002, the ability of companies to raise funds on either the public or private markets was restricted, triggering a reduction in the average value of M&A deals in the pharma sector. Globally, there were 374 M&A deals announced in the pharmaceutical sector in 2002, which represented a 12% uplift on the number of deals announced in the previous year. However, PricewaterhouseCoopers latest analysis of deal activity in the pharmaceutical sector shows that the average value of deals in 2002 was substantially lower than in 2001. Excluding Pfizer's proposed $60 billion combination with Pharmacia, the total deal value was only $11 billion, compared to $61 billion in the previous year, PricewaterhouseCoopers said. The Pfizer-Pharmacia merger accounts for 85% of the sector's total deal value. The public markets were virtually closed for IPOs for most of 2002 and consequently private companies looking to raise funds had to rely on further injections from their private equity investors. PricewaterhouseCoopers said the 12% rise in overall deal numbers announced in 2002 was driven by increases in North America (19% increase to 149) and Asia Pacific (25% increase to 104). Deal numbers in Europe and the Rest of the World both declined in 2002. It said the growth in the number of U.S. deals in 2002 implies that U.S. corporates have been faster than their European counterparts to react to the difficult funding environment by precipitating consolidation. In the Asia Pacific region the largest deal in 2002 was the $294 million acquisition by Abbott Laboratories of the remaining 33.3% of the Japanese company Hokuriku Seiyaku which it did not previously own. U.S. acquirers launched seven of the top ten deals in 2002 - the same figure as in 2001. In 2001 all seven U.S. acquisitions were of U.S. targets, whereas in 2002 this figure reduces to four. In 2001 only one of the top ten targets was a European company, whereas in 2002 four were European. PricewaterhouseCoopers predictions for 2003: * The public markets for IPOs in the pharma/biotech sectors have historically followed an approximate four year cycle (a one-year peak followed by a three- year trough) and it see no reason why this cycle should buck this trend, implying no public markets recovery until 2004 * It anticipates that the current culture of risk aversity will prevent much in the way of 'mega-deal' activity, although wouldn't be surprised to see at least one large deal, perhaps in Europe. While deal values will remain low, the number of deals done at the smaller end of the market will remain high. This activity will be fuelled by factors such as pressure for consolidation in the European biotech sector (encouraging early signs in the U.K. announcements of prospective deals involving British Biotech, RiboTargets, Cambridge Antibody Technology and Oxford GlycoSciences) and accelerated consolidation in emerging Asian markets.