Band Together: Corporate and Cultural Convergence in Life Sciences M&A

24 June 2020

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Mergermarket is pleased to present Band Together: Corporate and Cultural Convergence in Life Sciences M&A, published in association with Mintz.

M&A plays an important role in enabling the life sciences ecosystem. It is one of the main routes by which promising treatments are acquired, nurtured and brought to market. And it is one of the routes by which life sciences companies refresh their portfolios so they can remain relevant to investors. This report takes a deeper look at the current deal drivers and unique challenges dealmakers within the life sciences sector face during integration.

Key findings include:

  • When asked about the rationale for their most recent deal, the top answer among respondents was patent expirations, followed closely by diversifying/improving product portfolio.
  • A high proportion of seller respondents obtained an acquisition price well in excess of their goal. When asked about the price paid, 28% say the price was 10-20% above target, with 16% reporting that that it was up to 10% more.
  • 54% of respondents say the integration process applied in their most recent deal has to date been either somewhat or very successful, while 31% say the integration has been unsuccessful.