Device/Diagnostics Quarterly Deal Statistics, Q4 2015
At $1.2 billion, Q4 device financing was the second-lowest quarter of 2015; M&A dollar volume was also low, but included multiple deals across various cardiovascular markets. Diagnostics financing was also down in Q4, totaling $403 million; acquisitions were worth $441 million.
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Medtech M&A activity has been on the rise for several years along with a surge in the number of higher-valued mega-deals, those worth at least $1 billion. Yet a survey of all deals with known values indicates that median deal value has actually declined.
The height of the summer saw eight $1bn plus deals penned, including those by Pfizer and Roche.
Three $1B+ alliances were penned in July. Topping the list was a potential $2M deal between Skyhawk Therapeutics and Sanofi for the development of novel small molecules that modulate RNA splicing for challenging oncology and immunology targets. Skyhawk will grant Sanofi exclusive worldwide intellectual property rights to candidates discovered and developed under the collaboration. Skyhawk receives $54M up front and is also eligible to receive over $2B in potential milestone payments, as well as potential royalties on future sales. In the top July M&A by deal value, SD Biosensor and a consortium formed with private equity firm SJL Partners agreed to acquire US-based in vitro diagnostics company Meridian Bioscience in an all-cash transaction valued at approximately $1.53B. Founded in 1976, Meridian is a fully integrated life science company that manufactures, markets, and distributes a broad range of diagnostic test kits, purified reagents, and biopharmaceutical enabling technologies. The company has gained expertise through numerous acquisitions over the years including point-of-care testing firm Magellan Biosciences, GenePOC (develops POC molecular diagnostics for infectious diseases), and gastrointestinal diagnostics maker Exalenz Bioscience. Financing reached $3.97bn in biopharma, $851m in device, and $318m in diagnostics.