  A New Prescription for PharmaDownloadSecuring Value from Biotech Integrations in a Changing Investment Landscape
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IntroductionThe Pharma M&A landscape has shifted towards smaller and earlier stage Biotech deals. This contrasts to the blockbuster deals of the past few years and pharmaceutical companies need to change how they approach these acquisitions to fully realise the benefits. In this article, we provide an overview of the challenges that these deals present, and how Pharma can proactively overcome these hurdles to realise the full value. |
The past decade in the Pharma M&A landscape has seen $1.6tn exchange hands. The latter half of the decade saw the emergence of mega deals where large pharmaceutical conglomerates (PharmaCos) reshaped their portfolios by identifying non-core assets to divest and closely align their products to core competencies and focused therapeutic areas. Recently, we have seen a lot more acquisitions of a smaller scale, earlier stage Biotechs from PharmaCos, in order to transform their future capabilities, tackle more complex disease areas and accelerate access to new technologies and treatments. |
$1.6tn The past decade has been characterised by mega deals with $1.6tn exchanging hands $200bn $200bn expected revenue loss from patent expiry $5-15bn $5-15bn in pipeline Biotech acquisitions per transaction in the next year |
We have gathered learnings from across our network, to identify the major challenges and opportunities that these deals present, in addition to five actionable steps that can be adopted to improve the likelihood of securing post deal value  |
Biotech deals come with many challenges, with a greater ratio of clinical to commercial assets, leaner infrastructure and innovative therapies with new delivery pathway: |
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PharmaCos need to consider how to transform existing operating models to maximize post deal value, maintain research productivity and sustain patient access. Hence, to secure maximum value, key benefit drivers and integration considerations should be identified early in the process. In this article, we explore five actionable steps that teams should consider across the deal lifecycle. |
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