Biotech Values

[DewDiligence]

Drug/biotech megamergers* have added shareholder value, according to McKinsey:

http://www.mckinsey.com/Insights/Health_systems_and_services/Why_pharma_megamergers_work

This is not surprising insofar as megadeals are often made with the purpose of leveraging the balance sheet, which is an attractive proposition in an era of low interest rates. My supposition is that serial midsized acquisitions by “roll-up” companies have created less shareholder value, if any.

*Defined as deals with a nominal value of $10B+.