Healthcare and Life Science M & A

The front line of M & A activities, healthcare and life science companies, were mainly bystanders in 2024. , And a disadvantageous evaluation.

Transactions remain low (lower than 10 years average), and the trading value of the first 10 months in 2024 decreased by 28 % compared to the same period in 2023. Obviously, there is no large return to normal (see Figure 1).

However, participation in the M & A market is a powerful forecast factor in success in this industry, and the most frequent buyers, at least one transaction each year, are 12.2 of the TSRS (TSRS). I know that the % growth is achieved. From 2012 to 2022, we compared it with 0.3 % of companies that were not acquired (see Figure 2). This difference is greater than any other industry and emphasizes the importance of M & A's TSR in medical care. Therefore, staying by bystanders is not a sustainable long -term strategy.

Considering this reality, a medical company that has been active and active in the new reality of the market has shocked M & A's deceleration trends historically and active. Gilead Science, Merciences, ABBVIE, STRYKER, Boston Scientific, and Johnson & Johnson were all games.

Johnson & Johnson Medtech recently invested more than $ 30 billion and doubled cardiovascular. In 2024, in 2022, in 2022, the SHOCKWAVE Medical and V-WAVE were acquired in addition to the pre-purchase of ABIOMED and 2023 in the layer-shaped ABIOMED. Guilade purchased or invested in two biotechnology companies to strengthen innovation muscles. The striker has announced that M & A will be the “first -ranked use of future cash in the future”, using capital for the targets of various sectors, maintaining a bold M & A strategy, and will be “the first use of future cash in the future.” 。

It seems that other people in the whole health care and life science subsector are seeing these leaders to achieve new revenue, access the very necessary innovation and technology, and speed up product development. In addition, there is a possibility of catching up more.

Let's take a look at changes that show the return to M & A.

AI is a destructive technology that is no longer an option for a healthcare company.

In pharmaceuticals, the rise of AI in drug discovery and diagnosis reconstructs sector competition. A wise company appears ahead of large changes. They regard the AI ​​-compatible platform as an important asset for M & A transactions. Consider that BionTech will acquire Instadeep in July 2023 to strengthen your status in drug discovery, design, and development with AI.

Despite the need, a large -scale pharmaceutical company chooses a partner rather than acquiring a partner as the landscape evolves. It was the road that Bristol Myers Squibb took in collaboration between Owkin in 2022 and Tempus in 2023. In such an arrangement, it is necessary for companies to integrate innovation and reconsider their strategies for choosing, partner, or acquired abilities.

In MedTech, companies pursued M & A to provide AI's power to provide individualized medicine, diagnosis and imaging, surgical robot engineering, and care. The purchase of Stryker Care.ai is a great example. The striker accelerates the distribution of virtual care work flows and smart room technology that has been assisted in AI.

Despite the need, a large -scale pharmaceutical company chooses a partner rather than acquiring a partner as the landscape evolves.

The big hit GLP-1 treatment brings opportunities and uncertainty.

These groundbreaking treatment defines the future of chronic disease management, especially diabetes management and weight loss management. In the latter half of 2023, we saw incumbent porma companies competing to acquire small and medium -sized enterprises in this field and expand their product portfolio. This applies to the fact that Roche has acquired a license agreement between Carmot Therapeutics and ASTRAZENECA eco genes. The additional player of the GLP-1 means that the pie can be divided, and the price may be lowered to the price.

Diabetes management is one of the largest profit pools in MedTech. Therefore, many companies still evaluate the long-term meaning in business, whether they are positive or negative, and how the future M & A strategies will affect the current portfolio. Is decided. These treatments can greatly grow in the entire sub -cector, but there are still many about whether supply corresponds to demand, whether signs have obtained the approval of regulatory authorities, and whether the payments are refunded. I have uncertainty.

More investment in specialized and range trading

Healthcare companies continue to evaluate portfolios, which is more than 80 % of transactions, which is higher than in other industries. Companies focus on M & A in strategic fields that match the innovation and long -term growth potential.

In addition to the GLP-1, the high-growth region of Pharma contains immunology and tumor. In a wider range of healthcare services, companies have doubled the selected specialized field by learning the practice of community tumor.

MEDTECH continues to watch a stable curve -out flow to strengthen the focus of portfolios and improve the fiscal status. For example, Baxter International has sold Vantive, a kidney care unit purchased by Carlyle Group and Atmas Health.

Companies focus on M & A in strategic fields that match the innovation and long -term growth potential.

How can Healthcare and Life Science Companies proceed with the strategy of M & A?

The overall health care sector remains slow, but it feels bullish in 2025. Historically active M & A players will move forward to acquire strategic assets and take advantage of these important trends. The best thing is to build muscles for scope trading, use the generated AI to accelerate the trading process, develop M & A strategies and diligence processes to evolve government regulations, and evolve government regulations. It will help you to secure seamless execution.

Build muscles for scope trading. Focusing on the healthcare industry's range trading, you need an advanced M & A function to verify a valuable driver. For example, you need a new software and technology to support more complex synergistic models, an increase in planning to meet the regulatory guidelines, and to support more sophisticated diligence. Given the uncertainty of GLP-1 and AI, the needs are even more prominent. Planning a synergistic effect of revenue can be even more difficult, making it more difficult to predict transactions.

Use the generated AI to accelerate the trading process. Just as the generated AI shakes the industry itself, new technologies can get the advantage of trading (see “M & A generated AI: You are not behind -yes”). Generative AI makes healthcare and life science companies more quickly and more wise on global trends, destructive technology, financing, and innovation. The front runner has already used it faster, for more complete screening, and has identified assets in an earlier stage.

Develop M & A strategies and diligent processes to consider the regulations of the evolving government. In many fields of health care and life science, stricter regulations on price setting and government policy changes are the facts of life. Last year, serial acquirers adapted to this new reality by building a long period of time for transactions and paying attention to anti -trade consideration early. The new Federal Bureau in the United States may consider alternative solutions and rescue measures, but it is too early for megamarger how it will affect transactions. Furthermore, it is unknown how M & A has a potential tariff on transactions, especially for transactions. In order to succeed, healthcare and life science companies need to be ready to adapt to strategy, diligent processes, and trading models, as new policies and regulations are generated.

In order to ensure seamless execution, the integrated team will be involved in diligence. Considering the continuous high reputation of quality assets, the best acquisitioners are more bullish in the synergistic effects of cost and revenue. The larger the transaction, the more we are thinking about ways to achieve these synergistic effects and economically function. The hardening of innovative assets was historically related to science (in many cases, the assets are rarely touched after the acquisition), but in higher praise, more important talent and innovative functions. While maintaining, you need to plan a more active operational synergistic effect. These transactions.

In this rapid evolving industry, a medical and life science company that has discipline to live with new reality, bold, lagging behind competitors who take a long -term approach.

overview

Industry views