Biggest Healthcare Deals Of 2020
Spurred by the global pandemic, healthcare investments are on the rise. Here’s a look at five big-ticket healthcare deals announced last year.
Spurred by the global pandemic, healthcare investments are on the rise. Here’s a look at five big-ticket healthcare deals announced last year.
ACQUISITION VALUE: $39 billion
In December 2020, British pharmaceutical company AstraZeneca confirmed its acquisition of Alexion Pharmaceuticals to support its long-term vision to develop novel medicines in areas of immunology with high unmet medical needs. In 2019, Alexion reported revenues of $5 billion and 21% year-on-year growth. AstraZeneca plans to use Boston, Massachusetts, U.S. as its headquarters for rare diseases, capitalizing on talent in the greater Boston area. The combined company is forecasted to deliver double-digit average annual revenue growth through 2025.
Gilead Sciences and Immunomedics
ACQUISITION VALUE: $21 billion
U.S.-based biopharmaceutical company Gilead Sciences announced in September 2020 that it would be acquiring antibody-drug conjugate (ADC) technology firm, Immunomedics. The deal will provide Gilead with Trodelvy, a Trop-2 directed ADC approved to treat triple-negative breast cancer, with potential in other forms of breast cancer and additional solid tumors. Immunomedics is on track to file for regulatory approval in Europe in the first half of 2021. The acquisition was completed in October 2020.
Teladoc Health and Livongo
MERGER VALUE:
$18.5 billion
American virtual care provider Teladoc Health announced its merger with Livongo in August 2020. The combined entity is positioned to create an improved consumer-centric virtual healthcare ecosystem while subsequently reducing costs. As per the deal’s terms, existing Teladoc Health shareholders will own around 58%, and existing
Livongo shareholders will control approximately 42% of the new company. The merger was completed in October 2020 in just under three months. Teladoc Health reported 2020 full-year revenue growth of 98% year-over-year to 1.09 billion, with total visits climbing 156% to 10.6 million.
Siemens Healthineers and Varian Medical
ACQUISITION VALUE: $16.4 billion Germany-based Siemens Healthineers confirmed it would acquire Varian Medical Systems in August 2020 to develop a comprehensive portfolio to fight cancer and strengthen its position in healthcare. The two companies have been working together since 2012 in the “EnVision” partnership to shape the future of cancer treatment, combining Varian’s therapeutic systems and Siemens Healthineers imaging technology. In 2019, Varian generated revenues of $3.2 billion, with an adjusted operating margin of around 17%. Siemens Healthineers targets at least $356.5 million per annum in the fiscal year 2025 in earnings before interest and tax.
Gilead Sciences and Forty Seven
ACQUISITION VALUE: $4.9 billion
In March 2020, Gilead Sciences bought cancer immunotherapy company Forty Seven in a deal that includes the first-ofits-kind drug candidate magrolimab, based on technology licensed from Stanford University. Gilead aims to transform and simplify care for people with life-threatening illnesses globally, and this acquisition will help strengthen its immune-oncology research and development portfolio. Beyond magrolimab, Forty Seven is preparing to advance two additional investigational compounds into clinical testing. The acquisition was completed in April 2020.