Healthcare consolidation shows no signs of slowing down in wake of $40B deals — 5 things to know

The healthcare industry is rapidly consolidating with many companies believing consolidation is the prime way to survive the turbulent healthcare landscape, according to The New York Times.

Here are five things to know:

1. Many consolidation activity is due to biotech firms and product lines growing to compensate for older products whose sales are declining.

2. Abbot plans to purchase St. Jude Medical in a $25 billion transaction.

3. Sanofi put forth an offer to acquire Medivation for nearly $9.3 billion, and AbbVie penned a $5.8 billion deal to acquire Stemcentrx.

4. Many healthcare companies are merging in response to new payment methods and new regulation.

5. Some regulations successfully blocked mergers, including the $150 billion Pfizer and Allergan merger, which was essentially banned due to new inversion regulations.

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