Updated on 12 June 2013
Mr Franc Kaiser, director, InterChina, China
The M&A climate had started to heat up in 2012, and it is likely to get hotter in 2013. The majority of China's 2012 deal activities was related to drug manufacturing assets and drug commercialization, unlike years back when CRO services was the name of the game.
Many local players have reshuffled their investment portfolios and acquired other domestic companies, driving the consolidation forward in terms of production capacities as well as sales and distribution channels. On the other hand, non-Chinese pharma players have realized that China is becoming the world's second largest drug market and is growing at 15-18 percent.
Other interesting facts and figures:
• What were the top 20 global M&A transactions of 2012?
• What were the top 20 M&A deals in the pharma and biotech sector in 2012?
Overall, both M&A transactions and venture capital investments were on the rise in 2012. The deal valuations were at an average of 3.2 times revenue multiple, and a fast growing market drives the EBIT multiples beyond 20 times, which is not necessarily different to other sectors in China, but will remain higher compared to other industries in the years to come.