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Pandemic slowed healthcare mergers, acquisitions in Q2, analyst says

The COVID-19 pandemic dampened healthcare merger and acquisition activity across the globe in the second quarter of 2020, according to a new analysis by S&P Global Market Intelligence.

Five things to know:

1. The aggregate value for healthcare M&A fell sharply in the second quarter of 2020. The total transaction value was $12.3 billion in the second quarter, a decrease of $17.1 billion in the first quarter of 2020, and a decrease of $124.9 billion from the same quarter one year prior. 

2. There also was a drop in the number of healthcare M&A deals in this year's second quarter. This year, In the second quarter there were 393 deals, compared to 558 in the second quarter of 2019. 

3. Of the top 20 healthcare deals in the quarter, seven targeted biotechnology firms and six involved pharmaceutical companies. 

4. The deal with the highest transaction value for the second quarter was Novo Nordisk, which said it will acquire biotech Corvidia Therapeutics for up to $2.1 billion. 

5. S&P Global Market Intelligence, a division of S&P Global that provides essential intelligence and data for individuals and investors, said that although dealmaking slowed in the second quarter, the pandemic also may trigger a short-term rise in strategic M&A dealmaking in the U.S. hospital and health systems sector. This includes private equity firms looking to acquire physicians offices.

Find the full report here


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