普华永道－并购

M&AintheBiotechSector:AnIntroductionEricDoyon,CFADirector,CorporateFinance&InvestmentBankingPricewaterhouseCoopersSecuritiesInc.Rendez-vousCapitalFebruary25,2003TableofContents1.Introduction:M&AActivityintheBiotechSector2.TheM&AProcess•StrategicPlanning(rationaleforM&Atransaction)•DealExecution•Post-acquisition/Merger3.CertainPitfallsofM&A1.Introduction:M&AActivityintheBiotechSector•Globally,M&Aactivityin2002wasdowncomparedto2001.•InCanada,thenumberofM&Adealswasdown7%to1,218whileintheU.S.,thenumberoftransactionswasdown11%to6,945.•Withregardtothevalueofdeals,theslidewasevenmorepronounced,withtheaggregatevalueofM&AdealsinCanadadroppingbyover25%.IntheU.S.,thatdropwasevensteeper,withthevalueofM&Adealsfallingbynearly49%.Source:DealogicM&AActivity-AllSectors20012002VariationNumberofdeals-Canada1,3061,218-7%-U.S.7,7676,945-11%-World26,35923,546-11%Valueofdeals(US$billion)-Canada78.258.3-25%-U.S.895.4458.7-49%-World1,8001,400-22%1.Introduction:M&AActivityintheBiotechSector(cont’d)•2001wasabanneryearforM&Ainbiotech,withAmgen’sacquisitionofImmunex(US$16.9billion)and3otherdealsinexcessofUS$1billion.•In2002,thelargestarm’s-lengthtransactionwouldhavebeenrankedonly7thin2001.•ThenumberofUS$10million+dealswasdown33%whiletheaveragevalue,evenexcludingtheAmgen/Immunexmega-deal,wasdown41%.M&AactivityintheBiotechsectorwasalsodownsignificantlyin2002Source:ThomsonFinancialM&AActivity-Biotech20012002VariationDealsoverUS$10million4027-33%Value(US$millions)26,6873,960-85%Averagevalue667147-78%Avg.valueexcl.Immunex251147-41%1.Introduction:M&AActivityintheBiotechSector(cont’d)DoesthatmeanthatM&Awillnotremainanimportantfactorinthebiotechsectoroverthecomingyears?Theshortansweris:no!•Already,2003isshapinguptobeabusieryearthan2002.Examplesofrecentannouncementsinclude:–Aeterna’s$44millionacquisitionofZentaris(announcedDecember30,2002)–OSIPharmaceuticals’US$32millionacquisitionofCellPathways–J&J’sUS$2.4billionacquisitionofScios–US$1.6billionmergerofNPS/Enzon–ShrinkingdrugpipelinesofsomeBigPharmas–Abundanceofcompanieslackingcriticalmass–Difficultfinancialenvironment–Scarcityofmanagementresources•Driversforfurtherconsolidationstillexist:2.TheM&AProcessStrategicPlanning(rationaleforM&Atransaction)•Complementaryproducts/technologies•Criticalmassfor:–Marketclout–Humanresources(attracttalent)–Attractventurecapitalists–Obtainanalystcoverage(forpubliccompanies)•Eliminatekeycompetitor•Verticalintegration(ex.:productmarketingcapabilities)•Other,includingsheernecessity(ex.:cashrichand“productless”orcashlessandpromisingproducts)!Afasttracktogaincompetitiveadvantages2.TheM&AProcess(cont’d)DealExecution•Targetacquisition/mergercandidates•Evaluateinternalcapabilitiesandconsiderappointingadvisor(s)•Valuatetargetandidentifypotentialsynergies•Structuretransaction•Arrangeforappropriatefinancing•Duediligenceprocess•Integrationplanning(includingkeyemployeeretentionplan)Post-acquisition/Merger•Rapidlyexecuteintegrationandimplementdecisions•Assignresponsibilitiestorealizesynergies•Measureperformancerelativetoinitialobjectives(notalwaysquantitativebynature)2.TheM&AProcess(cont’d)3.CertainPitfallsofM&AMostM&Atransactions(60%to80%)fail…Butlet’sputthingsintoperspective…AOLTimeWarner:Theworstmergerever?AOLTimeWarner:Theworstmergerever?AOLTimeWarner:Theworstmergerever?MostM&Atransactions(60%to80%)fail…Importantissuesinclude:•Keyemployeeretention•Lackofculturalfit•Disconnectionbetweenduediligenceteamandstrategicteam•Unclearpost-transactionplanning(objectives,responsibilities,etc.)•Lackoftruestrategicrationaleforthedeal…butsuccessstoriesdoexist:Aegera’sexample3.CertainPitfallsofM&A