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Behind Scios-J&J: No Groundswell for M&A

Executive Summary

While the investment banking world does its best to sing the virtues and likelihood of biotech consolidation, the industry isn't paying attention. Indeed, perhaps the most interesting aspect of J&J's acquisition of Scios isn't the fact that J&J outbid the competition, but just how little competition it had to outbid for one of the very few clearly successful product-oriented biotechs.

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A review of the past five years' significant ($100mm or greater) pharma-biotech acquisitions among the industry's largest players illustrates Big Pharma's diverging M&A strategies, and why there's more to come. We examine who's buying and how much has been spent, and take a look at who has succeeded in getting value (and pipeline) for money.

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