Four notes from the report:
1. Expect high pharmaceutical acquisition activity to continue, the financial business said, over the next year and year and a half. Pending acquisitions include Amgen buying Horizon Therapeutics for $27.8 billion, Pfizer buying Seagen for $43 billion and Merck buying Prometheus Biosciences for $10.8 billion.
2. Companies with high potential for significant mergers and acquisitions include Bristol-Myers Squibb, Merck and Royalty Pharma. Those with moderate potential are AbbVie, Biogen, Gilead, Pfizer and Viatris; and those with a low potential include Amgen, Eli Lilly, Johnson & Johnson and Regeneron.
Although Merck recently announced its plan to acquire Prometheus, Moody’s said it sees “significant M&A potential” after this acquisition.
“Despite a solid growth outlook and an expanding pipeline, Merck’s revenues are becoming increasingly concentrated in the blockbuster immuno-oncology drug Keytruda, and the company has stated that M&A remains a top business priority,” the report said. “Business development would mitigate pressures that Keytruda is likely to face later this decade in the form of the Inflation Reduction Act and/or biosimilar competition.”
3. With Biogen hiring a new CEO and a new corporate development leader, a merger or acquisition “appears increasingly likely” but did not fit into the high category because of two medications with pending futures: depression drug zuranolone and Alzheimer’s drug Leqembi, which has been approved but is barely covered by CMS.
4. Johnson & Johnson’s ongoing litigation concerning its now obsolete talc-based baby powder products, which could cost the company billions of dollars, puts J&J with a low M&A potential.
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.
