Andy Acker, a Portfolio Manager on the Global Life Sciences Team, discusses how large cap biopharmaceutical companies utilise M&A strategies to fill product pipelines and maintain steady cash flows.

Key takeaways

  • This past week’s acquisition of Allergan by AbbVie is the latest in a string of deals within the sector where the acquirer was willing to pay a substantial premium for a target company.
  • In addition to undertaking their own research and development, large biopharmaceutical companies often pursue acquisitions especially for innovative products or franchises with consistent cash flows.
  • With more than US$150 billion in free cash flow at the disposal of the 20 largest biopharmaceutical companies, we expect M&A to continue to be a driver of shareholder value within the sector.

This video was recorded on 28 June 2019.