Pharmaceutical deal activity fell in 2011 as pharmaceutical companies cut R&D expenditure and streamlined their research activities. The need to partner remained, however, and the most sought after assets commanded sizeable premiums in 2011. Reflecting the difficult funding environment for biotech companies, M&A activity remained robust in 2011 and M&A deal values rose, although contingent payments were commonplace. Oncology continued to dominate the deal-making landscape and Roche, the leading player in this market, was the most prolific dealmaker.