DECODING THE M&A LANDSCAPE

Consolidation has emerged as a major trend as the pharma industry seeks new avenues of growth and looks to expand its existing capabilities.

- Kavita Jani

A look at the factors spurring M&A activity in the sector

Navigating the complex terrain of the pharma industry demands constant adaptation and strategic manoeuvring. As the pharma market continues to grow and branch out, major players aim to expand and diversify to remain at the top of the game. Companies are eagerly engaging in strategic deal-making, probably more than ever before. The Indian pharma landscape has also witnessed significant expansion, punctuated by noteworthy acquisitions.

Global M&A landscape of 2024

According to Aurojyoti Bose, Lead Analyst, GlobalData, the pharma industry's strategic alliances and M&A deal landscape presented a contrasting trend during 2024. There was an increase in the number of M&A deals announced in 2024 compared to the previous year but strategic alliances' volume fell. While M&A deals volume registered a year-on-year growth of 17.7 percent during 2024, the announcement of strategic alliances fell by 17.2 percent.

Globally, several pharma giants made alliances for the expansion and diversification of product portfolios, focusing on improving supply chains and strengthening manufacturing capacity acting as key rationales driving M&A strategies. Bose highlighted, "Many companies were seen going into a buying frenzy and we saw them announcing a spate of M&As during the year. Some notable companies that went for multiple M&A announcements during the year included Novartis AG, Novo Nordisk AS, Merck & Co, Sanofi, GSK plc, Johnson & Johnson and AstraZeneca Plc, among others."