DEALS ANALYSIS
Deals activity: Europe deals increase; mergers soar YoY
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Deals activity by geography
Medical industry deals, as captured by GlobalData’s Medical Intelligence Centre, are up year-on-year (YoY) across the majority of regions.
North America is leading in terms of deal value, but recorded the lowest YoY growth in deals volume at 4%. Asia-Pacific, ranking third in terms of deal value, has seen the biggest YoY change, with deal volumes increasing by 55%.
The volume of deals recorded by GlobalData also increased YoY in Europe (24%) and Middle East and Africa (39%), but declined in South and Central America (-12%).
Deals activity by type
| Deal type | Total deals value ($m) | Total deal count | YoY change (volume) |
| Venture Financing | 150,437 | 17,132 | 74 |
| Partnership | 14,984 | 10,840 | 104 |
| Equity Offering | 391,359 | 8,405 | 251 |
| Acquisition | 2,036,562 | 7,363 | -20 |
| Debt Offering | 1,123,347 | 2,467 | -3 |
| Asset Transaction | 99,785 | 1,829 | -5 |
| Private Equity | 271,883 | 1,750 | 80 |
| Grant | 154,739 | 565,715 | 64 |
| Licensing Agreement | 6,608 | 686 | 46 |
| Merger | 150,958 | 311 | 26,172 |
A breakdown of deals by type and volume shows a 26,172% growth in mergers YoY, while acquisitions are down 20%, partnerships are up 104% and asset transactions are down 5%. Financing deals have increased across some types, with venture financing up 74% YoY and equity offerings up 251%, while debt offerings are down 3%.
Private equity has grown by 80% in number of deals YoY, while the number of grants recorded is up 64%.
Deals activity by therapy area
A notable development apparent in GlobalData’s analysis of medical industry deals by therapy area is the increase of deals in specialised sectors. After remaining relatively steady, the number of recorded deals in specialised sectors increased significantly in 2019/20. This is likely due to demand caused by the ongoing Covid-19 pandemic.
Note: All numbers as of 01 April 2021. Deals captured by GlobalData cover M&As, strategic alliances, various types of financing and contract service agreements.
For more insight and data, visit GlobalData's Medical Intelligence Centre
Latest deals in brief
BrainChip and Biotome partner to develop SARS-CoV-2 antibody tests
Australia-based BrainChip Research Institute and Biotome have entered into a research partnership to develop antibody tests for infections such as SARS-CoV-2. BrainChip’s Akida neuromorphic processor chip will be used to infer sensor responses and to analyse which responses are most representative for protective antibodies.
Merck’s spinoff Organon to acquire Alydia Health for $240m
Merck has entered a definitive agreement in which its intended spinoff Organon will acquire the commercial-stage medical device company Alydia Health for a total of up to $240m. Alydia Health will receive an upfront payment of $215m and $25m on achieving the milestone. Before the spinoff of Organon, Alydia will get $50m of the upfront payment while the remaining $165m will be paid by Organon on the closing of the transaction.
My Health Logic to acquire LOC technology for kidney disease diagnosis
My Health Logic, a subsidiary of Health Logic Interactive, has entered into a licence agreement with an arm’s length third party (licensor) to acquire a global, exclusive licence to the UAL-Chip, a lab-on-chip (LOC) technology for kidney disease diagnosis.
Varian Medical invests in Israeli company Bend It
Varian Medical Systems has made a new investment in Bend It Technologies, an Israel-based company that is developing steerable microcatheters. Bend It’s microcatheters are used by interventionalists for minimally invasive peripheral vascular procedures.
CSI acquires WavePoint Medical’s peripheral support catheters
Cardiovascular Systems (CSI) has acquired WavePoint Medical’s portfolio of peripheral support catheters, which are used during peripheral vascular intervention procedures. These catheters are used for guidewire support to aid in lesion crossing and for guidewire exchanges.
Cardinal Health to divest Cordis business to H&F for $1bn
Pharmaceuticals distributor Cardinal Health has signed an agreement to divest its Cordis medical device business to private equity firm Hellman & Friedman (H&F) for approximately $1bn. The company acquired Cordis, which develops and manufactures cardiology and endovascular technology, from Johnson & Johnson in 2015.
