thomas schaumburg’s Post

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 #mergerandacquisition  #Innovation #DigitalTransformation #SmartPMI Prinz & Partners LLP https://lnkd.in/gdxK5Z3y

Life sciences M&A shows new signs of life. "Having peaked in 2021 and plummeted as the pandemic ended, deal value revived in 2023, with pharma companies pursuing growth and medtech companies chasing profitability. These trends promise to continue in 2024." At least, this is what the latest McKinsey & Company report told us. Two interested things: "Most of the deals in the sector remained smaller biotech-related transactions aimed at generating growth." and "Medtech companies look at growth across the portfolio and spin off lower-growth businesses in pursuit of higher aggregate growth." https://lnkd.in/dU4_MJg5

Following a rollercoaster ride in the world of Life Sciences M&A, it looks like we're in for an exciting upswing! After peaking in 2021 and experiencing a downturn post-pandemic, deal values have made a remarkable recovery in 2023. Pharma giants are on the hunt for growth, while medtech firms are zeroing in on profitability. All signs point to these trends gaining even more momentum in 2024. Get the full scoop on this revival from McKinsey & Company: #lifesciences #biotechindustry  

🚀 Maximizing success in biotech deals   An article by PwC highlights the need for a tailored approach to integrate acquired biotech companies successfully. It emphasizes that a one-size-fits-all strategy is inadequate.   Large-scale M&A activity in the biotech sector is expected to be limited in the coming year due to evolving regulations and companies' recent efforts to focus on core therapeutic areas and innovation.   The article suggests that the ideal range for biotech deals currently lies between $5 billion and $15 billion. However, even with adjusted valuations, deal premiums remain essential for deal success.   To maximize the value of acquired biotech companies, the following 8 critical success factors should help achieve favorable outcomes in biotech deals.   1️⃣  Focus on Value Drivers: Concentrate on assets driving deal value, especially those nearing regulatory submission.   2️⃣ Accelerate R&D Pipeline: Prioritize the success of the acquired company's R&D pipeline.   3️⃣  Win Hearts and Minds: Retain and inspire employees by preserving the entrepreneurial spirit.   4️⃣ Communicate with Impact: Consistent and purposeful communication is vital.   5️⃣ Start Integration Early: Involve integration teams during diligence and establish executive sponsorship.   6️⃣  Tech-Enabled Diligence: Use tech for efficient due diligence, like automated contract reading.   7️⃣   Leverage Capabilities: Utilize in-house strengths and stay aware of market dynamics.   8️⃣  Clear Integration Archetypes: Choose the integration approach that aligns best with value drivers.   In the evolving biotech landscape, these factors can help optimize the outcomes of acquisitions while addressing unique challenges and opportunities.   Access the full article by replying to this post below 👇 #pharmaceuticals #pharma #biotech #insights #competitiveintelligence

🧬 Navigating the Revival of Life Sciences M&A 📈 Diving into a riveting read by McKinsey & Company, "Life Sciences M&A Shows New Signs of Life," I discovered the sector's remarkable resurgence in deal-making activity post-pandemic. The analysis highlights how 2023 has become a pivotal year, with pharma and medtech companies leveraging M&A for growth and profitability. The strategic pursuit of precommercial biotech assets and a focus on portfolio optimization are setting the stage for an even more dynamic 2024. This thought-provoking piece presents a deep dive into the trends and strategies fueling this revival, offering invaluable insights into the future of the life sciences sector. For anyone keen on understanding the forces shaping life sciences, this article is a compelling read. #LifeSciences #MandA #Pharma #Medtech #StrategicGrowth #McKinsey

In tech, they call startups with billion dollar+ valuations unicorns. In biotech, we call them another day at the office. Why? Because billion-dollar exits are not uncommon in this industry. Take a look at the analysis by PwC: the top ten M&A deals in pharma and life sciences for YTD 2023 alone are valued at a staggering $83 billion. These numbers speak volumes about the immense potential and profitability of the biotech sector. As I’ve previously mentioned, there's a pipeline issue in biotech angel investing. We need more investors who recognize the incredible opportunities within this industry. Companies are building life-changing devices and therapeutics that can positively impact millions of lives. When I founded Bioverge, I knew that investing in biotech not only fuels groundbreaking innovation but also offers the potential for significant returns. Investing in the future of healthcare is a chance to join together health and wealth. Are you ready to be part of the biotech revolution? Join us at Bioverge and be at the forefront of a dynamic industry that combines cutting-edge science with extraordinary investment opportunities. More information on PwC’s analysis here: https://lnkd.in/gVwZvwzC #Techbio #Biotechnology #VentureCapital #AngelInvesting #ROI

🔬🌐 Global M&A Trends in Health Industries: 2023 Mid-Year Update Pharmaceuticals and life sciences (PLS) and healthcare services (HCS) sectors are attracting substantial investor interest, and this trend is expected to persist in the latter half of the year. Despite increased antitrust scrutiny, M&A remains valuable for bridging pipeline gaps and expanding portfolios. Large-cap pharma companies are looking to invest in midsize biotech firms, while portfolio reviews and divestitures of non-core assets remain essential strategies. Additionally, private equity firms are actively seeking to acquire innovative healthcare assets. The introduction of generative AI has added a new dimension of excitement to the market, as health players seek to integrate this technology into their offerings and are compelled to acquire relevant expertise. Major conglomerates in the pharmaceuticals and life sciences sector are proactively seeking M&A opportunities, including cross-border deals, to address pipeline gaps and achieve growth plans. Patent expirations for top-selling drugs in the coming years have prompted a sense of urgency in seeking transformative deals. Regulatory scrutiny has caused delays in some larger deals, leading companies to consider smaller acquisitions to mitigate regulatory friction. The combination of higher interest rates and lower stock prices has put pressure on corporate divestiture plans, necessitating the freeing up of capital for further M&A activities. Large pharma companies are conducting active reviews of potential divestiture candidates to align strategic priorities, mitigate patent expirations, and optimise portfolios. Recent C-suite succession planning at key large pharma firms may also trigger further portfolio reviews, leading to both divestitures and acquisitions. Private equity firms are focusing their interest on contract research organizations (CROs), contract development and manufacturing organizations (CDMOs), and medtech companies. The decline in public valuations presents opportunities for public-to-private transactions in these sectors. As the demand for skilled professionals in the health sector continues to grow, we remain committed to connecting exceptional talent with leading companies, facilitating innovation and driving positive transformations in the global health landscape. #AspireLifeSciences #lifesciences #pharma #pharmaceutical https://lnkd.in/dhMsWyK8

Biotech, pharma, and medical device sectors will continue to create new treatments and technologies through innovation and teamwork. Startups have reasons to be optimistic with available funding, yet achieving success demands robust clinical trials, fiscal prudence, and skilled teams. Legacy organizations have seen innovation slow in parts of their operations and are seeking strategic acquisitions. These acquisitions aim to ignite existing product lines or strengthen agreements with healthcare systems or payers. https://lnkd.in/gWBtQszm

I’ve been watching the upturn in biotech investment and acquisitions in 2024 with interest….is this a “one off” surge or the start of more sustained optimism for the sector? I’m not an investor or market analyst so please don’t read on for robust predictions of the market….but what does very much interest me is which types of biotechs are faring best and worst- and how innovation communications might be able to help. In short, there is a move by investors to safer bets. In 2020 and 2021, a majority of the companies going public were either in preclinical or Phase 1 testing. Now, companies with early, or broad drugmaking technologies are having a tougher time. We are always advising clients to build their innovation narrative as early as possible - and this reiterates the rationale why. Innovation means operating in unchartered territory - but alongside this to build confidence with investors - and all other key stakeholders involved in the journey of scientific and clinical discovery- it’s critical to take the time to educate and articulate the game changing potential of a new scientific field of discovery and the ambition of your biotech, why you could be a “partner of choice”. IPOs are an important indicator of the biotech industry’s health- they are showing signs of life. We all know patients are waiting. We all know we need a hotbed of innovation to flourish in the lifesciences sector to make a genuine difference. We of course all hope this surge in biotech market growth is sustained. What do others think? #strategiccommunications #innovation #biotech #leadership

Preclinical and clinical stage biotechs have been the most impacted but also stand to gain the most after the economic downturn and subsequent recovery. 💰📈 Here, Justin Culbertson, CPA of RSM US LLP delves into how small to midsize pre-revenue biotechs have been specifically impacted and what this could mean for organizations that support them. #clinicaltrials #clinicalresearch #biotech