Planning for Post-Deal Integration in Pharmaceutical and Life Sciences
11 April 2018
M&A and licensing remain the mainstay of strategy execution for pharmaceutical and life sciences companies. Although the volume of deals activity in 2017 declined by 22% vs. 2016 we see an increase in the complexity of deals given the changing market dynamics. Pharmaceutical companies continue to focus their business models through divesting or swapping non-core business units; changing healthcare ecosystems and the need for new commercial propositions have led to new partnerships and acquisitions (new technologies, digital and opportunities to integrate further into the value chain through acquiring services closer to the patient/consumer). In addition, US tax reform has shifted deals interest back to the US again. Traditional pharmaceutical models are now being challenged by new entrants with very different approaches to innovation and different value propositions. This has increased the competition for deals in high growth areas.
When seeking to buy a pharmaceutical company or business, it is crucial to plan for its post-deal integration in advance of a transaction, in order to minimize any disruption to the acquiring business following completion.
We touched on some of the key legal issues that may arise for Pharmaceutical Executive Europe. You can read the full article here.