Biopharma is experiencing a wave of new capital from private equity, with the influx of investors bringing exciting possibilities to the sector. Biopharmas need to consider how they can capitalise on private equity’s entrance to achieve their strategic goals by positioning themselves as buyers, sellers or competitors to private equity.

Emma Dabbs has explored for MedNous why the biopharma sector is now an attractive area for private equity. In her article Emma explores:

• How private equity firms are entering the market

• How biopharma can maximise the availability of new capital

• How biopharma should position themselves to private equity

The trend of PE entering the market brings our client work into the spotlight where we help clients form strategies that suit their ownership structure and support clients to protect against market changes and address margins.

© 2019 Evernow Publishing Ltd

Reprinted with permission from Mednous July/August 2019 (www.mednous.com)

The recent announcement of pharma’s latest mega-merger has not been received well by many people, except perhaps Allergan Shareholders. The deal has been highlighted as another defensive mega-merger to protect against patent expiry.

In light of this the Financial Times asked John Rountree for his views on the deal:

“Continuing to boost top-line growth when patents are expiring on key drugs is very difficult to achieve . . . but it will not stop companies from trying, it is a dynamic that means the merits of such megadeals do not always receive adequate scrutiny.”

Pharma M&A is a topic we have discussed frequently and how greater value can be found partnering and strategic collaborations.

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