Laurie Burlingame’s Post

Dealmaking in the life sciences sector comes with characteristics not typically seen in more traditional mergers and acquisitions (M&A). Deals often involve negotiating around complexities associated with both the unique nature of assets of life sciences companies and the unique industry ecosystem that brings these assets to life. Innovations—be they to drugs or medical equipment—can take years to develop and are not always guaranteed to succeed in the various clinical trial stages. These innovations can also involve multiple stakeholders from academic institutions, hospitals, startups, and established companies, creating a complex web of ownership issues, competing interests, and priorities. Check out this article by my colleague Laurie Burlingame for more information. #mllifesci #wearemorganlewis

Check out our latest Life Sciences Outlook: Some key takeaways in this issue: • Private equity, venture capital and IPO funding continue to lag; however, an expected peak in near-term interest rates offers hope. • Medtech companies will need to innovate and protect their intellectual property to attract VC investment. • Life sciences services companies should continue to evaluate and build strategic relationships as therapies and manufacturing demands become increasingly complex. https://lnkd.in/evr7B_GJ

Why do we see this more and more? Here are 3 reasons why: 1. It’s faster When youve got the money, buying someone else’s innovation is quicker. Time needn’t be your enemy when the shareholders come knocking. 2. It’s less risky Timelines aside, acquisitions enable Big Pharma to pick innovations that already have a track record of success. There’s less chance you’ll end up with something that doesn’t work. 3. Patents on old assets are expiring Spencer Knight and I just did a video that mentions this. Over $100B in patents are expiring for legacy Big Pharma therapeutics. They’ll need new medicines to fill the gap in revenue - so don’t expect mergers and acquisitions to stop anytime soon. So remember… When you’ve got the money, buying innovation can be faster and less rocky than doing it all yourself. Any other points you’d add? Drop them in the comments. #cellandgenetherapy #biotechnology #innovation

M&As are rebounding sharply, up 57% YoY in the US alone. But have you collected profits from any of them? If you haven't, I suggest you keep an eye on the life sciences industry. Not only does this sector have a high potential for dealmaking activity but it is also known for paying hefty premiums that reflect in triple- and quadruple-digit gains for shareholders of acquired companies.  With bullish projections for 2024, particularly in the burgeoning oncology sector, and major players like AstraZeneca and Pfizer actively seeking strategic acquisitions, now may be the time to start considering scooping up shares.  But of which companies? See our special report below: #LifeSciences #MergersAndAcquisitions #stockmarket

Exciting News in the Life Sciences Sector! Check out this insightful article from McKinsey & Company shedding light on the resurgence of activity in Life Sciences M&A. With new signs of life emerging, the industry is poised for dynamic growth and transformation. From reading this article, all I can say is buckle up! Picture this: a whirlwind of strategic partnerships, ground-breaking acquisitions, and visionary leaps into uncharted territories. The future of healthcare is being reshaped before our very eyes, and it's nothing short of exhilarating! Read more about the latest trends and developments in Life Sciences M&A here: https://lnkd.in/eDkNpn3C Stay informed, stay ahead! #LifeSciences #MandA #IndustryInsights

2024 is expected to be a better year than 2023. M&A was down in MedTech and health services, while life sciences showed resilience. Read the exclusive story. #merger #MedTech #life #sciences #health #services #acquisitions #companies #valuations #interest #rates #profitability #funding #medical #devices #healthcare #market

While M&A activity has seen a general slowdown recently, the life sciences sector is breaking the mold! According to Dealogic, there's been a remarkable 13% growth in the number of deals, as highlighted in the latest study by McKinsey & Company. What's noteworthy is the focus on smaller transactions in both MedTech and Pharma. In pharma, it's all about replenishing the R&D pipeline and fast-tracking new drug launches. Meanwhile, in MedTech, the race is on to digitize product portfolios, a crucial move in the evolving landscape of connected healthcare ecosystems. But here's the twist – these changing M&A strategies bring significant challenges. Acquired companies are often talent-rich, highly innovative, and boast a unique culture. Key individuals mostly value agility, quick decision-making, and an entrepreneurial spirit. Preserving this dynamic requires a nuanced integration approach. The key is to limit functional and technology synergies to the essentials, instead placing a strong emphasis on data and knowledge sharing. 🌐💡 #LifeSciences #MandA #Innovation #DigitalTransformation #SmartPMI Prinz & Partners LLP

Amid a bear market, biotech ventures have adopted a variety of novel exit strategies to optimize value. Many have been on full display in the wake of the JP Morgan Healthcare Conference. Chief among them is the “dual-track” process, where companies pursue IPO and an acquisition in parallel, rather than as alternatives. This approach has been gaining in popularity; it maximizes flexibility during liquidity events, while enhancing small ventures’ negotiating power. Moreover, the dual-track bargaining process can buy early stage biotechs precious time around an exit, which can be used to complete additional clinical trials to drive their valuation. On the other hand, executing a simultaneous IPO-merger strategy is incredibly resource-intensive, and is no guarantee of successful exit. What do you think? Is the current drive toward concentration misplaced? Is the dual-track exit process just another market fad? #biotech #jpm #exit #liquidityevent Elizabeth Cho-Fertikh, PhD Ferdinand Hui, MD Greg Buchert, MD, MPH Tai Mai Min Lang Laura Beken Vrushab Gowda, MD, JD https://lnkd.in/eGmYqeBh