Zentalis Pharmaceuticals and Teva Pharmaceuticals, the leading maker of cancer drugs, are the latest to be taken over by pharmaceutical companies in the United States, a trend that could reshape the health care industry in the coming years.
Teva’s acquisition of the Teva brand is the biggest of the big four, with Teva expected to close at $1.1 trillion in value by 2025, according to Thomson Reuters data.
Tevacor is the most recent to enter the drug space, buying Teva for $1 billion last year.
“These companies are a key part of the future of American health care,” said Dan Ragan, an analyst at New York-based Renaissance Capital.
A company that is already taking over its competitors? “
With Teva and Zental, they are building a new company to take over their business and their market, but they are doing it by taking over their existing competitors.”
A company that is already taking over its competitors?
That’s a little too much.
Tevetas acquisition of Teva is just the latest in a string of mergers and acquisitions that could threaten the health sector, Ragan said.
In February, Pfizer announced it would buy Covid-19 vaccine maker AstraZeneca for $750 million.
The same month, UnitedHealth Group agreed to buy Allergan for $4.6 billion.
And in November, the giant pharmaceutical company Pfizer bought AstraMedica, the maker of a rare blood cancer drug.
While the consolidation of the pharmaceutical industry may be in full swing, it is not unprecedented.
A number of major U.K. companies have already announced deals to merge with one another, including UnitedHealth, UnitedS and the British pharmaceutical company BSkyB.
For decades, American pharmaceutical companies have been taking over the health insurance industry, from Medicare to Medicaid to Medicare Advantage, which is a key component of the U:S.
health care system.
For instance, pharmaceutical giants Pfizer and Pfizer-owned Eli Lilly have been gobbling up smaller and less-powerful rivals in the health field.
In 2014, the pharmaceutical giant Astra Zeneca acquired a stake in the global health care provider Covid Therapeutics.
AstraZeneca now holds more than a 10 percent stake in Pfizer, while Pfizer owns about a 5 percent stake.
AstreaZeneca also has a 30 percent stake that it acquired in UnitedHealth in 2014.
The merger with Pfizer could have serious implications for the U.: For Pfizer to gain a bigger piece of the market for the drug-delivery company Covid, it would be buying a controlling stake.
But that could lead to a merger of the two companies, said Christopher St. Clair, an investment banker at Sanford C. Bernstein in Chicago.
The Pfizer deal could result in a merger between Pfizer’s health business and the Covid business.
If Pfizer decides to move into Covid and then AstraPharma, Pfizers control could shift to the Astra-Zeneca deal, said St. Circe.
“If Astra was going to acquire Astra and Pfizers share of Covid in a merged Pfizer/Covid deal, Astra might take that,” St. Cilroys said.
The Astra Zentas deal could also make it harder for the American companies to compete in the new market for health insurance companies.
According to the U., Astra is already the largest health insurance company in the country, with about 11 million subscribers.
In 2017, Astrava, Astrea’s other health insurance unit, received more than half a billion dollars in new government subsidies, which were set to end this year.
The subsidies will be phased out in 2021.
Department of Health and Human Services, which regulates health insurance, has also said that the subsidies will end by 2022.
That’s expected to mean that Astra, which has a more expensive health insurance plan, will be able to negotiate a lower premium with a smaller company, said Kevin Coker, an economist at Wells Fargo Securities in Minneapolis.
AstriaZeneca CEO Dr. David DeCristofaro said in a statement that Astravas deal is about delivering quality, affordable health care and will benefit our customers.
“Our new strategy will enable us to offer the best possible value for our customers,” DeCriertos statement read.
“We believe this agreement is a strong move for Astra to better compete with other providers in the market and will be a significant factor in Astra’s ability to grow its business.”
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