UK pharma sector stays immune to Brexit as innovation, scale spur deals

London

AS the United Kingdom's vote to leave the European Union wreaks havoc on the British economy, dealmaking momentum in the country's pharmaceutical industry is showing no signs of letting up.

Healthcare acquisitions in the UK have risen 21 per cent this year as total mergers and acquisitions (M&A) fell 43 per cent in Britain and dropped 16 per cent worldwide, according to data compiled by Bloomberg.

The industry - which was one of the strongest contributors to last year's record-breaking US$3.6 trillion of global M&A - is being propelled in part by a weaker pound (that's making British assets more attractive) and by a vital need to keep pipelines supplied with new, moneymaking treatments.

"The global nature of the sector provides a natural hedge against perceived headwinds," said Vincenzo di Nicola, managing director and senior healthcare investment banker at Robert W Baird & Co. "At this level of exchange rate, UK and European companies are cheaper for US trade buyers.…