What's Causing the M&A Frenzy in Pharmaceuticals?

The video discusses the aggressive acquisition strategies of pharmaceutical companies, focusing on Activists and their continuous deal-making. It highlights the industry's trend of buying pipelines and growth due to older drugs losing patent protection. The video also covers the impact of new tax rules on these deals and the record-breaking $450 billion in deals announced or completed. Allergan's defensive strategies against being acquired by Valeant are also explored, illustrating the competitive nature of the industry. Overall, the video emphasizes the significant impact of these activities on pharma stocks.

What is the primary goal of Activists' acquisition strategy?

• To reduce operational costs

• To diversify into new industries

• To focus on research and development

• To become a major pharmaceutical player

What was the approximate value of deals announced or completed in the pharmaceutical industry this year?

• $200 billion

• $450 billion

• $600 billion

• $800 billion

What was one of the reasons companies were seeking mergers and acquisitions?

• To reduce environmental impact

• To increase their workforce

• To escape high corporate tax rates

• To enter the technology sector

What strategy is Allergan considering to avoid being acquired by Valeant?

• Reducing its market share

• Entering a new market

• Expanding its product line

• Making itself too large to be bought

How have the pharmaceutical stocks been affected by the recent deals?

• They have decreased by 10%

• They have increased by 14%

• They have decreased by 5%

• They have remained stable