Who has the most cash to spend on M&A? According to a new analysis from Stifel, it’s Johnson & Johnson and Roche, each with $119 billion in “stretch firepower” that could be deployed on buying new companies or assets. Stifel’s analysis of the top 18 pharmas is calculated based on EBITDA (earnings before interest, taxes, depreciation, and amortization) and factors in net debt that could be taken on. Stifel defines “stretch firepower” and “comfortable firepower” based on calculations of EBITDA and net debt ratios. This hypothetical cash could then be used to fund an acquisition. For comfortable firepower, Novo Nordisk tops the list with $63 billion.
Read the full article: The Top Big Pharmas Have $1.2T in Stretch M&A Firepower Available //
Source: https://www.biospace.com/business/the-top-big-pharmas-have-1-2t-in-stretch-m-a-firepower-available