M&A and partnering deal values soared in 2014, in what was a record-breaking year for dealmaking in the life sciences sector. After mostly abstaining from acquisitions in 2013, big pharma appetite for M&A increased significantly, despite an overall downturn in deal activity, and the multibillion dollar deal returned to prominence. Creativity in M&A also emerged, as evidenced by the asset swapping between GlaxoSmithKline (GSK) and Novartis, and speciality pharma consolidation continued apace.

On average, licensing upfront payments and deal values increased markedly as compared to 2013 with large pharmaceutical companies willing to pay a sizeable premium for attractive clinical-stage assets in order to compete in key therapeutic areas. For the second year running, AstraZeneca was the most prolific dealmaker with Johnson & Johnson (J&J) and Roche following closely behind. Oncology, and the field of immuno-oncology in particular, continued to dominate the dealmaking landscape.