SNY - Mid-size pharmaceutical firms lead bigger rivals in acquisitions this year

Zhanna Hapanovich/iStock via Getty Images Concerned over high premiums of targets, the large-cap pharmaceutical companies have taken a backseat in acquisitions this year as they focused on repayment of debt accumulated due to previous deals. Meanwhile, with the need to sustain the long-term growth, their medium size rivals have picked up the slack thanks to new sources of capital. So far in 2021, the midcap drug companies have executed nine deals valued at $13.1B, nearly twice the amount spent by their larger rivals on eight acquisitions, The Wall Street Journal reported citing data from Evaluate Group Ltd. Some of the biggest deals cited in the report include the acquisition of GW Pharmaceuticals (GWPH) by Jazz Pharmaceuticals (JAZZ)  for $6.7B and other mid-cap dealmakers such as Horizon Therapeutics (HZNP) and MorphoSys AG (MOR). “That’s a sign of their maturity, and the expanded scope of the capital markets for these companies that were previously largely shut out,” SVB Leerink analyst

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Mid-size pharmaceutical firms lead bigger rivals in acquisitions this year