Mergers and Acquisitions in Pharmaceutical Markets

This study, commissioned by ASPE, uses multiple data sources to 1) assess trends in pharmaceutical mergers and acquisitions (M&As) over the 2010-2023 period; 2) evaluate characteristics of drugs involved in M&As, and 3) examine the effects of M&As on the pharmaceutical supply chain.

The report provides additional information on the data, methodology and results. Key findings are summarized below.

KEY FINDINGS

• From 2010–2016, the annual number of M&As in the pharmaceutical sector increased from just under 200 to 267. Thereafter, the numbers began to decline, going from 214 M&As in 2017 to 182 in 2023.
• The therapeutic areas most frequently targeted for M&As were oncology, followed by central nervous system disorders and anti-infectives.
• In the 12 months following an M&A, the market concentration increased by 5.9 percent, on average, when defining markets by therapeutic area.
• Following an M&A, there was a decrease in the drug quantity sold, which was measured by the amount of active pharmaceutical ingredient (API) in the finished drug product that was sold, both for drugs involved in M&As and comparable drugs not involved in M&As.
• Drugs involved in an M&A had 24.3 percent higher odds of going into shortage within two years of the transaction date compared to similar drugs not involved in M&As during the same time.

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