PE Firms Line Up for Pharmaceutical Targets

by | Aug 24, 2017 8:01 pm | Pharmaceuticals, Private Equity

Although pharmaceutical M&A has declined sharply over the past year, there has been an uptick in financial buyer activity in the sector in the first eight months of 2017. We don’t typically see a lot of financial buyers in this space, since they are easily outbid by strategic buyers that have the advantage of easy access to capital and cost synergies. Also, private equity buyers have been flocking to acquire “healthcare-lite” targets, such as eHealth or contract research organizations, in the past 12 months, largely to avoid potential regulatory and reimbursement roadblocks that come with a new administration. Pharmaceutical M&A is down 65% (only 55 deals) compared with the 156... Read More »