M&A inflation just pushed the average biopharma valuation to a scary new peak
The consultants at Novasecta have been crunching the numbers on biopharma M&A for the past few years and concluded that a lot more of these deals are weighing in so heavily inflated now that many buyers would be better off looking for other ways to grow their businesses and their pipelines.
Looking at each deal as a multiple of revenue for the acquired company, the London-based consultancy says that the median value of a buyout last year was 39 times revenue. Compare that to a median 19 times revenue in 2015 and 8 times revenue in 2014, and you get a pointed picture of the fresh peak that’s been created in valuations.
Unlock this article instantly by becoming a free subscriber.
You’ll get access to free articles each month, plus you can customize what newsletters get delivered to your inbox each week, including breaking news.