EY+2023年并购火力报告-How life sciences companies can secure value through better dealmaking -2023 EY M A Firepower report

throughbetter2023EYM&AFirepowerreport2023EYM&AFirepowerreport0303vesummarycompaniesdobetterdeals?05Intheshallows:2022inreview0209Willthetideturnin2023?Guestperspectivestperspectivetperspective21tperspectiveClosing2323odology25Authors26Acknowledgmentsansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportEEXECUTIVESUMMARYvationremainsattheheartofthelifesciencesindustryandwearecurrentlylivingthrougharesurgenceinnewresearchbreakthroughsacrossthesector.Fromnewmodalitiesinbiopharma(fromcellandgenetherapytomRNAplatformsandbeyond)totheincreasingadoptionofdigitaltechnologiesanddatascience,innovationistransformingthesector.Amonglifesciencescompanies,theleaderswillbethosethatsetthepaceofchange.cquisitionmovestotakeoutrightechnologiesThecriticalimperativeogressAndwithtimingalwaysacriticalcomponentinrationratherthancontrolcouldbethetemplateforprogress.chEYstrengthofitsbalancesheet)yetchoosingnottodeployit.osecuregrowthandfutureprooftheirneedtotakeacentralstrategicrole.eyondadingplayersfacesignificantupcomingthgapsparticularlybecauseofpatentexpiriesctorbuthavetheFirepoweraking2.Political,economicandregulatoryuncertaintiesareaffectingtheindustry’sdealappetite,butcorrectionsinnitialpublicofferingIPOandarecreatinga“buyer’smarket,”whichwillpromptthebig3.Themostimportanttargetsarenotonlythenoveldrugsofferimmediatevaluebutalsothergingoutsidethesectorincludingbreakthroughsinartificialintelligence(AI),bigdata,roboticsandothers.scompaniescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportvaluefrominnovation,butinthelongertermwecanexpectthenatureofthisinnovationtoshiftasdataanddigitaltoolsareincreasinglyintegratedintocareprovision.willneedtorethinktheirbusinessmodelstoadapttothenthealthecosystemthatcanectivepersonalizedcareKeydefinitionsolvingecosystemInalongerdasthecalmbeforethestorm;thedealmakingdiphasthepotentialtoeekinnovationnotjustintheirportfoliosbutacrosstheirentireoperatingmodels.Definitiontofundstrategicinitiativesincludingtransactionsbasedonthetipleinputscashandequivalentsexistingdebtandmarketcapitalization.FirepowerlesquisitionswithvaluationsofroughlyUSbillionbiopharmaandUSbillionMedTechyersmarketcapitalization.ateequityacquirersmarketcapitalizationatthetimeofpurchase.escompaniescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportINTHESHALLOWS:2022INREVIEWmpaniescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportmberthelifesciencessectorisonpacetothefullyearof2021.Inall,117dealsweresigned,a27%declinecomparedwith2021.Theoverwhelmingmajorityofthisyear’sdropin2022M&Ainvestmentworldwide(seeFigure1),reflectingthedisruptiveuncertaintiesofongoinggeopoliticalconflictsandmacroeconomicvolatility.FigureQuarterlyMAdealvalueandvolumetrendsQ2020-Q42022YTD(#)(#)1,2001,0001,2001,000900750800600600450400300200502000004Q‘201Q‘212Q‘213Q‘214Q‘211Q‘222Q‘223Q‘224Q‘22*(#)(#)60100605080406030402020100004Q‘201Q‘212Q‘213Q‘214Q‘211Q‘222Q‘223Q‘224Q‘22*kofdealmakingactivityinthefirst11monthsof2022wasparticularlygwithMAspendthelowestitetheglobaluncertaintiesthelifesciencesindustryhasstrongstructuralM&AFirepowerreport(January2022),itedsomeofthemajorfactorsconstrainingdealmakingin2021:hpremiumsforbiotechtargetsastheewconsiderableinvestorattentionduringtheearlystagesofthepandemic.TotalbiopharmaMAvalueandvolumeYTD20008060402003002502005000500201420152016201720182019202020212022*Source:CapitalIQ,EYanalysis.OnlydealswithpubliclydisclosedvaluesgreaterthanUS$100millionwereconsideredforthisanalysis.*Q4dataasof30Npaniescansecurevaluethroughbetterdealmaking 3075 2560 2045 30 3075 2560 2045 30 5•HighcapitalliquiditywithsmallerventurecapitalVCfunding.otechfinancingwiththerecordIPOmarketof2021decliningalongsidethelicmarketsYet,theshiftinfinancinghasnotpromptedmostmajorlifesciencesplayerstoreturntodealmaking.Inthebiopharmasectorparedwith2021,withPfizer’sacquisitionofBiohaventhesinglelargestdealpriortoDecember2022.ingbackthoughnnannounceditwillpayUS$28.5billiontoacquireticswhichmarketsthezzateprotumumabtrbwThedealfallsoutsideescopeofthisreportsdataandwilllikelybefinalizedinthefirsthalfof2023.tbetheonlybigplayermakingareturntothebigdealmakingtablein2023.opharmaquarterlyMAdealvalueandvolumetrendsUSb(#)0004Q‘201Q‘212Q‘213Q‘214Q‘211Q‘222Q‘223Q‘224Q‘22*Source:CapitalIQ,EYanalysisNote:M&AdealsaboveUS$100mnanalyzedandcategorizedbasisonannouncementdate.*Includesdealsuntil30November2022.Figure4:Biopharmastrategicallianceinvestment,2014-2022*805020906030020122013201420152016201720182019202020212022*3503002502005000500Source:EYanalysis,Biomedtracker.Chartshowspotentialvalue,includingupfrontandmilestonepayments,forallianceswheredealtermsarepubliclydisclosed.*Includesdealsuntil30November2022.ompaniescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreport75604530 30 2575604530 30 25 20 5asanoutlierdrivenbythreemajordealsthatconstitutedmorethanofthetotalvalue:quisitionofamajorityshareofMedlineIndustriesbyBlackstoneCarlyleand•ThermoFisherScientific’sUS$16.8billionacquisitionofPPDBaxtersbuyoutofconnectedcarespecialistHillromforUS$10.5billionthefourthquartersignificantlyliftedtheoveralldealvalueforthesector,withJohnson&Johnson’sedaheartrecoveryspecialistcompanyrepresentingaboutfeureMedTechMAtrendsQQYTD(#)04Q‘201Q‘212Q‘213Q‘214Q‘211Q‘222Q‘223Q‘224Q‘220Source:CapitalIQ,EYanalysisNote:M&AdealsaboveUS$100mnanalyzedandcategorizedbasisonannouncementdate.|*Includesdealsuntil30November2022.acrossthehealthcaresectormaymakeitdifficultforhospitalstomaintainprocedurevolumes,orksinprocurementofmedicaldevicesandothercapitalequipment.ulseoftheIndustryreportwhichcontainsmoredetailedanalysisoftheMedTechsectoranditsperformancein2021-22),“Continueduncertaintyintheoverallfinancialmarketscontinuesintact,butnear-termstormcloudsarelikelytopausetransactionsvolumesinto2023.”companiescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportWILLTHETIDETURNIN2023?scompaniescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportelsofFirepoweravailabletoindustryFallelsofFirepoweravailabletoindustryFallingvaluationsandlimitedcashrunwaysincreasespressureonsmallercompaniestoexitInnovationrenaissancekesavailableanumberofhigh-potentialnewmodalitiesaspossibleM&AtargetsngwindownarrowsaccesstopublicmarketsforsmallcompaniesInflationandothermacroeconomicuncertaintiescausingriseincostofcapitalLoominggrowthgapsduetopatentexpiryrequireinorganicgrowthtoclosethemAlliances,ratherthanM&A,mayassumestrategicpriorityelytorspalneasonsforcompaniesFigureDriversanddeterrentsonlifesciencesdealmakingin2023spitefallingvaluations,highpremiumsremainformost-soughtetsPolicPolicymakerinterventionswithuncertainimpactsondrugpricing,marketaccessandantitrustregulationThefivefactorsdrivingthelifesciencesindustrytouseitsFirepowerhasdeepreservesofFirepower.AttheendofNovember2022,thebiopharmaindustryaloneheldmorethanUStrillioninFirepoweran11%reaseonandthehighestlevelFigure7:LifesciencesFirepowerlevels,2014-2022*b1,5001,20090060030001,4271,4271,2211,221Firepowerfrom2021to2022*201420152016201720182019202020212022*ansecurevaluethroughbetterdealmakingloominggrowthgaps,particularlyregardingbiopharmapatentexpiries.tiontospinFACTORTHREEThereisanongoinginnovationrenaissanceinthelifesciencessector,whichofferscompaniespotentialaccesstoproductsthatcansecuretheirfuturegrowth.ergoasignificantsurgeininnovation,withmultiplenewtherapeuticmodalitiesreachingingcellandgeneesandthemRNAplatformpmentBeyondtraditionaldrugandmedicaldevicetechnologies,therearealsoemergingopportunitiestousedigitaltechnologiesanddataanalyticsinwaysthatcanpotentiallytransformhealthcare.MedTechhasalreadytakenstepsinthisdirection(witnessBaxter’s2021acquisitionofHillrom).Thepotentialofthesenewapproachestotransformcareanddrivefuturegrowthwillbe(US$b)95090085080075070065060055020212022E2023E2024E2025E2026E2027ESource:EYanalysis,EvaluatePharma.Note:GrowthGapanalysisisbasedonOctober2022EvaluatePharmadataandexcludestheimpactofCOVID-19vaccinesandtherapies,whichareforecasttohavemaximumimpactbetween2021–23andmoderateimpactfrom2023–27.amajorimperativeastheindustryontinuestoevolvetowardanintelligentsystemScientificinnovationalone,whetherintheformofnewntheuturetobeabletoachievethehighreturnstheindustryexpectsThereisagreaterneedtodeliverbetterandsandotherdigitaltoolstodemonstratereachbeyondtheirtraditionaloperatingrecognitionforthevalueoftheirureappropriatereimbursementfrompayers.correctionsof2021-22,thehighvaluationsoftargetcompaniesshouldbecomelessofanobstacle.Thedropinbiotechvaluationshasyettotriggerasurgeindealmaking.However,giventhepressuresofgrowthgapsandthepotentialgainsfromaccessingnewmodalitiesandinnovations,lifesciencescompanieshaveurgentmotivationtomakedeals.Thevaluationdropinthesectorwillincreasetheincentives,asa“buyer’smarket”takesshape.ssasIPOandSPACfundingbecomesmorechallenging,increasingthelikelihoodofM&Aexits.marketnarrowstheoptionsforsmallernsecurevaluethroughbetterdealmakingConvergenceandcompetitioninlifesciencesinvestmentAnotherdealmakingincentiveisthatintheMAspacefromsidethesectorandriskmissinggrowthopportunitiesiftheyandarelikelytocontinueinglytakeoverfromesinfundingdrugdevelopmentandotherperspectivesaHuangPrincipleintheplsincludingTechgiantAmazonsUS9billionacquisitionoftechnology-drivenJuly2022billionacquisitionofSignifyHealthtoy•Walgreens’approximatelyUS$392October2022lsthatcansecuretheirfuturesectorcontinuestoevolvetowardtheemergenceofanintelligentemansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportHOWCANLIFESCIENCESANDWELLNESSCOMPANIESDOBETTERDEALS?nsecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportthroughdealmaking,butalsotherelativelyhighlevelofuncertaintyintheoperatingenvironment,itisniesgiveseriousstrategicthoughttohowtoidentifyandals1.Attempttode-riskdealsasfarastkindsofdealshaveastintegratenewacquisitionsytoremovesomeoftheriskfactorfromoncentratingtheirFirepoweragerelativelywellvalidatedtherapeuticareaswithhighgrowthrojectionsseeFigureIntermsofchoosingtargets,dataindicatesthatglymovingasealvolumein2022,forthefirsttimesincenizethattheymustpayapremiumforde-riskingacquisitionsearsthemaintherapeuticystemFigure10).Figure9:Recentyearshaveseenashiftininterestofcompaniesfrommarketed/lateymidstageassetstoaccessinnovationatareasonableprice201420152016201720182019202020212022*PreclinicalPhasePhasePhase3MarketedSource:EYanalysis,CapitalIQ.|*2022dataasof30November.Phaseanalysisbasedondatafor503biopharmadeals,excludingover-the-counter,animalhealth,generics,CRO/CDMOtransactions.Megadeals,valuedatgreaterthanUS$40billion,werealsoexcludedfromthephaseanalysis.Ifthedealinvolvedmultipleproducts,themostadvancedproductwasusedtocharacterizethedeal’sdevelopmentstage.Numbersmaynotaddupto100duetorounding.Figure10:Biopharmadealvolume2014-2022*,bytherapeuticareafocusBiopharmaM&AvaluetrendbyTopTAs(US$b),2014-2022201420152016201720182019202020212022*6.830.217.931.430.726.731.928.030.714.512.5ology2219.78.612.36.830.00.8716.10.940.54.9ease15.44.560.80.3Others93.498.267.023.915.357.717.948.816.115116411188771269010488BiopharmaM&AvolumetrendbyTopTAs,2014-2022201420152016201720182019202020212022*9ology25531838744765Genito-urinary412412334352957254ease951321314Ophthalmology232-33333162111412Others64615130312629483010711391906666686775Source:EY,CapitalIQ,M&Adataasof31December,2022.OnlyBiopharmadealswithpubliclydisclosedvaluesgreaterthanUS$100millionwereconsideredforthisanalysis.Note:2022*representsYTDdatauntil30Nov2022.Analysisexcludesmega-mergers.ansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreport5.8%4.6%5.8%4.6%Historicalrevenuegrowth(5-yr.mediansalesCAGR)(5-yr.avg.)anbenodefinitiverulesforofpasttrendssuggeststhatbolt-ontransactionsyieldbetterresultswhennatherapyareaadjacenttothecoreportfolioofthelyforcompaniesthatbuilddepthandexpertiseinspecifictherapeuticreasratherthandiversifyingacrossadrangeoftherapeuticfieldsureeMorefocusedcompaniesoutperformmorediversifiedcompaniesrtherapeuticfocusGreaterdiversificationEBITDAmargin(5-yr.avg.)(5-yr.avg.)Source:EY,CapitalIQ,Marketdataasof31October,2022.Companieswithgreatertherapeuticfocusaredefinedascompaniesderivinggreaterthat50%oftheirrevenuefromonetherapyarea.Companieswithgreaterdiversificationgenerateslessthan50%oftheirrevenuefromasingletherapyarea.Basedonthisdefinitioneightcompanieshavegreatertherapeuticfocusand17showgreaterdiversification.EBITDAisearningsbeforeinterest,taxes,depreciationandamortization.ROIC,returnoninvestedcapital,calculateshoweffectivelyacompanyallocatescapitaltoprofitableinvestmentsorprojects.ROCE,returnoncapitalemployed,indicatesafinancialratiousedtoassessprofitabilityandcapitalefficiency.nsecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportefficientlyandcost-effectively,butonhavingtherightiverationofthecompaniesandteamsbeingbroughtneralcompaniesshouldfollowthisfivepointPost-acquisitionorinvestment,focusonprotectingthe“crownjewels”thatwilldrivethefuturedirectionofthecompany.2.IdentifyandempowerthetransitionleaderearlyintheeedBuildamindsetmarketconditionsevolve.3.DetermineduringtheplanningphasewhethertofullyrmoreonthisthemeThisdecisionwillbedrivenbymultiplefactorsincluding:hesizeoftheacquisitionignmentwiththeacquirerscoresc.Thelevelofexpectationofthetargettotrulytransformthefuturetrajectoryoftheacquirer.visionaderorganizationsandreducetheriskofworkforceuncertainty.agetimelines,monitorworkstreams,andidentifyanddeliverightandguidancecanhelpclientsidentifyandperformcquisitionsuccessfullytohelpoptimizingtheoutcomeoftheirM&A.uptheintegrationmanagementoffice,throughsynergyidentificationoperatingmodeldesignchangemanagementandfunctionalintegration.opportunitiestoleanintomakingmajor,transformativeM&Acompaniesmustnotlosesightofthefactthatfindingandacquiringtherighttargetisonlythefirststep;theprocessoftbeoptimizedendtoendifitistodeliverthelonggansecurevaluethroughbetterdealmakingAtBayer,partnershipsarecriticaltoourcurrentandfutureieswithexternalpartnersWehaveintooveralliancesohnsonJohnsonNubeqawithOrionarethefruitsofpartnerships,andover60percentofourcurrentpartneringtodriveinnovationntludingourstartupkatexternalinnovationbeitadrugtechnologyweareagnosticonwhattypeofpartnershipsueypeofdealbeitanoptiondealanequityinvestmentpartneringtodriveinnovationForexample,wetookastraightforwardacquisitionapproachompanywithaPhaseIIIreadydrugforvasomotorsymptomsassociatedwithmenopause.Asanestablishedleaderinthewomen’shealthcarespace,itmadesenseforustosimplybuyandintegratethecompany.platformstoservemajorunmetmedicalneedsthatcannotbegoaltogofurtherthanformingaresearchalliance,in-licensinganasset,orbuildingaportfoliothroughmultiplesmalldeals.nsecurevaluethroughbetterdealmaking worldstogetherandaccelerateprograms.Havingbeenintheindustryformorethan0yearsandhavingseen nrsinthefieldanditwascriticalthatwegetoadvancerapidlyto(AskBio),andthatbroughtwithitnotjusttheclinical-stagetractdevelopmentandtalentandtheexpertise.VividionTherapeuticsdelWewantthemtoretaintheirnameandidentity,keeptheirentrepreneurialculture,andremaininchargeoftheirownnanceboardbringinginexternalexpertsandinvestorsfromtheindustryntsafetyarenontopreservetheirsuccessfulcultureandnotover-burdenitwithbureaucracy.ThegoalofthismodelistobringthebestofbothprogramsHavingbeenintheindustryforover30yearsailtodeliverontheirpromisendVividiontogrowattractnewtalentandenterinturnintonewpartnerships.newtechnologiesintoexistingactivities:forexample,ourIandningtofindnewdrugsagainstfibrosisandourworkwiththeStanfordCenterforDigitalHealthandHumatodecentralizeclinicaltrialrecruitment.WealsoconsiderdigitalandriveindependentcommercialvalueehaveteamedupwithwireVenturestomonitoraspectrumofdigitalhealthstart-ups,lookforpotentialwinners,andsubstantialpartnership.securinginnovationAcrosstheindustry,therehasinevitablyeroptionalitybecauseocapitalNowthattherehasourstrategicgoalandthespecificsofeachpotentialtargetWilljoiningtwocompaniesmakeusfasterandbetter,shouldwelookatoptionorlicensingdeals,orisitmoreappropriatetomakeanequityinvestment–ortocombineequitywithresearch,withourjointlabsallowingourteamstocollaboratewithacademiatosolveproblems?Ultimately,itisaquestionofwherewewanttogo,andwhatkindofassetsorsolutionswillhelpusgetthere.M&Aandthesecomplementarypartnershipalternativesallformpartofatoolboxwecanusetoaccesstoinnovationaswecontinuetopursueourlong-termstrategicgoals.ansecurevaluethroughbetterdealmakingwiththem,connectingthemwiththecapital,capabilitiesandinsightstheyneedtoacceleratetheirinnovationswithminimalctonearningsRDbudgetsordilutioninvestmentfirmwithmorethanadecadeofexperiencepartnershippotentialinlifeflexibleapproach,structuringdealstoenableourpartnerstofundtheirpipelineswithoutexpandingtheirbudgetsandpartnershippotentialinlifeeantysioritizingnsecurevaluethroughbetterdealmaking openingbetween2025and2030,aslossofsivitychallengesdrivehighactivityin ehasryandaccelerateddevelopmentincludingdecentralizedclinicaltrials.Ifthispatterncontinues,itmayrocessesopeningmoreopportunitiesforustodeploycapitalandgetproductstolsomonitoringhowAIandescanexpeditedevelopmenttimesandInthenearerterm,weforeseeacriticalwindowofopportunityopeningbetween2025and2030,aslossofexclusivitytivityinMAcollaborationslicensingehavecapitaltodeploybutwecanpartnerwithcompaniestoshareupfrontacquisitionsevaluations,dueinparttothetougherregulatoryenvironment.anieswithtransformativefirstinclassinnovationsthatholdsignificantpatientandmarketpotentialusuallyllregardlessofthebroadermarketenvironmentandattractcapitalandbuyersWelookforwardtocollaboratingwiththesekindsofpartnersin2023andbeyond,fundingtheirinnovationandequippingthemtodevelopthelife-savingtherapiesandtreatmentsoftomorrow.ompaniescansecurevaluethroughbetterdealmakingpotentialtoculusforMAdownonanticompetitivegonDemocratsusedtheirfinalmonthscontrollingbothchambersnthatwillgreatlyimpactthelifesciencessector:theInflationReductionActdrugpricingprovisionsfortheirdecisiontohaltcertaindrugsmingagencyveationprovisions,that,alongwithotherpartisanefforts,aretinuetohaveanoutsizedimpactactivityinthelifesciencesindustrympaniescansecurevaluethroughbetterdealmakingourdevelopmentstowatchthatundoubtedlywillhaveimplicationsforthelifesciencesindustryin2023AntitrustactivityattheFederalTradeCommissionCandUSDepartmentofJusticeDOJSinceassumingofficein2021,theBidenadministrationhasrepeatedlysignaleditsintenttocrackdownonantitrustactivityinthehealthcaresector:ndtheUnitedKingdomtolaunchtheMultilateralathowregulatorsmeasuretheimpactofpharmaceuticalmergersorderfromInJunetheFTClaunchedanefforttoexaminetheimpactofverticallyintegratedpharmacybenefitmanagersncyis“lookingcloselyattheroleofprivateequity”inhealthcare.ascenteredaround“pay-for-delay”dealsorprice-fixinglitigationlscrutinycouldleadtoupdatedmergerguidelinesisstilldealingwiththefalloutofitsJune2021decisiontouseersmitteesnearvotethatclinicaltrialsfailedtoshowadequatefficacyAndinOctoberanFDAadvisorycommitteermbirthdrugMakenafromthemarketafterpost-marketstudiesfailedtoshowclinicalonMakenawillbecomethefirstacceleratedapprovaldrugtobefullyremovedfromthemarket.izetheuirepostapprovalstudiesandarkettheseactionscouldhavebigonsforthetypesofdrugspharmaceuticalcompaniespartsofthecountryweveseenanotableshiftatthefederalJanuary,andit’swidelybelievedthattheBidenadministrationwillrenewitatleastoncemoresettingupapotentialenddatein2023andtheendofnumerouswaiverflexibilitiesinhealthcare.entlythefederalgovernmentcoversmostcostsforccinesandsomeoftheirmarketing,butasfederalfundingrunsout,thecostburdenwillshifttothecommercialmarket.Atthesametime,ticalcompaniesarereevaluatingthepriceoftheirconsideration,understandingtheperspectiveofthelifesciencesindustrywillcontinuetobeimportantforbothCongressandtheadministrationthroughtheremainderof2022andintonextyear.Industryleadersshouldlookforopportunitiestofeedintothepolicymakingprocesstosharewithpolicymakershowthemarketcanbestfunctiontobetteretheneedsofpatientsompaniescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportMETHODOLOGYanalyzedfrom1January2014to30November2022usingketssubsectoregchthecompaniesparticipategeofBoltonsmalltomedium-sizedacquisitionsthataccountforrivateequityoutsidethelifesciencesindustrytincludecrossbordertransactionsthatarepartoflarger,transformativetransactionsoverthecountergenericsoranimalhealthproductssmultipleinputsincluding)cashandequivalents;(2)debtcapacityincludingcreditlinesand)marketcapitalizations.theanalysisAcompanywillnotacquiretargetsthatexceed0%ofitsexistingmarketcapitalization.nresultsinanewcompanythedebttotioofthecombinedentitycannotexceedasis•Themethodologydoesnotcalculatetheabilitytoperformorrowmoretofinancetransactions.Megamergersacquisitionswithvaluationsofroughlygreaterthan50%oftheacquirer’smarketcapitalizationatthetimeofpurchasempaniescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportthatextendbeyondtheupperthresholddefinedintheermethodologythegoalistocreateauniformhenagivenperiodrelativetotheavailablescribedontheancesmpaniesintwodifferentsubsectorsookplaceFirepowercalculationswereperformedfortheseparateentitiesuntilthecloseofthetransaction.•AbbVieInc.•AmgenInc.•AstellasPharma•AstraZenecaPLCIngelheim•Johnson&JohnsonPfizerInc.•Sanofiompaniescansecurevaluethroughbetterdealmaking2023EYM&AFirepowerreportAUTHORS+4420795