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How Common are Postmerger Divestitures of Acquired Company Units?

M&A Leadership Council

For example, in Switzerland, Sandoz and Ciba spun off their chemicals business units – one as a taxable initial public offering and one as a tax-free “demerger” – before merging their pharmaceutical cores into Novartis. If the parent retains an interest in an IPO carve-out, this may be termed a “divestiture IPO.”.

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Cooley’s 2022 Life Sciences M&A Year in Review

Cooley M&A

But it wasn’t all carve outs and concerned investors – even with the headwinds in the industry and beyond, there were still several traditional public M&A deals involving biotechnology or medical device companies, as large pharmaceutical companies continued to have cash to deploy for acquisitions. Let’s dig in.

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Cooley’s 2023 Life Sciences M&A Year in Review: Potent Mix of Creativity and Resilience Spurs Activity Heading Into 2024

Cooley M&A

While the year saw an overall decline in M&A activity (down 17% from 2022) , total pharmaceuticals and life sciences deal value in 2023 increased by approximately 50% compared to 2022. Why did life sciences outperform the market? The last quarter of the year ended with a surge of deal activity.

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Cooley’s 2024 Life Sciences M&A Year in Review: M&A Slims Down in 2024, but Will Appetites Grow in 2025?

Cooley M&A

While global M&A deal value across sectors remained relatively flat overall , pharmaceuticals and life sciences M&A in 2024 dipped relative to the prior year. Indeed, the largest US biotech exit in 2024 was Vertex Pharmaceuticals $4.9 Immunology deals stood out, including Vertex Pharmaceuticals $4.9 from 2023. [1]

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