Topic: Pharmaceuticals and life sciences

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Dissecting MedTech M&A deals

Shreya Gupta (Toronto)By Shreya Gupta (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
As we previously reported, this year has seen a surge in healthcare-related M&A. Many of these transactions are in the medical technology industry, or MedTech. While the industry’s healthy profit margins and opportunities for growth have driven a flurry of activity, the potential for large rewards from MedTech acquisitions also comes with unique obstacles: Regulatory compliance: … Continue reading

Legal update: M&A in the pharma sector

Sara Josselyn (Toronto)By Sara Josselyn (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
Of counsel James Baillieu explores the pharma M&A horizon in PharmaTimes magazine. The pharma sector saw deal activity fall in 2017 compared to previous years. While the number of deals remained robust, their value was significantly lower due to fewer large acquisitions. Looking ahead, however, many expect deal levels to pick-up as Trump’s tax reforms … Continue reading

Life sciences M&A in 2018: key strategic considerations

Sara Josselyn (Toronto)By Sara Josselyn (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
A month into the new year, speculation continues regarding the forces that will shape mergers and acquisitions (M&A) for 2018. EY recently released a report (the Report) forecasting possible M&A trends in the life sciences sector. As noted in the Report, while the total volume and value of M&A in the life sciences sector fell … Continue reading

Private equity investments in healthcare: a look into the future

Troy Ungerman (Toronto)By Troy Ungerman (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
Last year was a record-breaking year for private equity investments in the healthcare industry, with a total disclosed deal value reaching $36.4 billion by the end of 2016. Mid-year reviews of 2017 indicate a downward trend in the number of private equity investments but a significant increase in the value of investments compared to 2016. … Continue reading

Specificity is key: six archetypes of successful acquisitions

Sara Josselyn (Toronto)By Sara Josselyn (Toronto) on Posted in M&A, Pharmaceuticals and life sciences, Technology and innovation
Canadian M&A activity has continued to rise in 2017, but with the successes come many more stories of failure. Studies indicated that 70% – 90% of acquisitions ultimately fail. How does a company beat these odds? A recent article by McKinsey & Company suggests that companies who enter into acquisitions with a specific value proposition … Continue reading

Acquisitions in the life sciences start-up space: a principal-agent problem in the making

Matthew Literovich (Toronto)By Matthew Literovich (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
Earlier this year, Bloom Burton & Co. hosted the 2017 Bloom Burton & Co. Healthcare Investor Conference. The conference brings together early stage life sciences companies with professional advisors in the industry for two days of talks given by the companies on what they are trying to accomplish and how they have been progressing. Over … Continue reading

New genetics technologies set to revolutionize life sciences

Sara Josselyn (Toronto)By Sara Josselyn (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
Curing diseases by editing a person’s genes or using medicine specifically designed to work with their genetic profile has long been the realm of science fiction. However, new technologies have made this area of “personalized medicine” a hotbed for potential M&A growth. CRISPR, a new technology already in discussions for a Nobel Prize, is revolutionizing … Continue reading

Private equity trends towards specialization

Troy Ungerman (Toronto)By Troy Ungerman (Toronto) on Posted in Energy, Intellectual property, M&A, Pharmaceuticals and life sciences
Competition has increased in the private equity (PE) market. In the US, PE firms paid a 31% premium for acquisitions in 2016, an eight-year high according to Bloomberg data. There are a growing number of market participants chasing after ever scarcer quality businesses thereby causing price appreciation of businesses. In addition, the availability of low … Continue reading

Smooth sailing for marijuana start-up streaming deals?

Sara Josselyn (Toronto)By Sara Josselyn (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
On April 13, 2017, the federal government introduced Bill C-45 in the House of Commons. This proposed legislation marks an important step towards the Liberal government’s promise to legalize and regulate the possession, sale, and distribution of cannabis in Canada before July 1, 2018. As the bill currently stands, upon coming into force, Canadians over … Continue reading

M&A trends and how to add value in medtech deals

Eliza DinaleBy Eliza Dinale on Posted in M&A, Pharmaceuticals and life sciences, Technology and innovation
It is well documented that the medical technology (MedTech) industry has been one of the fastest growing sectors in North America over the past several years. In Ontario alone, there are currently 24,000 employees and over 1,300 companies working in this space. While it is quite healthy (Ontario’s MedTech exports amounted to roughly CAD $1.7 … Continue reading

Strong outlook for pharma and biotech M&A in 2017

Seemal Patel (Toronto)By Seemal Patel (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
While certain sectors experienced a shaky 2016 with respect to M&A activity, deal activity in the pharmaceutical and biotechnology industries held steady following record levels in 2015 and is expected to perform equally as well in 2017. In Prognosis positive: Pharma and biotech M&A outlook, a recent report by Mergermarket (the Report) on these industries, … Continue reading

2017 M&A outlook

Sean Williamson (Toronto)By Sean Williamson (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
As 2016 draws to a close, Ernst & Young has released its 15th edition of its Global Capital Confidence Barometer (the GCCB), which looks forward toward the trends and expectations in the M&A market for 2017. The GCCB is survey of more than 1,700 senior executives, including 52 Canadian executives, from large global companies located … Continue reading

Outlook on healthcare sector M&A: the next 12 months

Sara Josselyn (Toronto)By Sara Josselyn (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
Previously on this blog, we reported that M&A activity in the healthcare sector was expected to rise during 2016. According to a Market Spotlight released earlier this fall by Mergermarket in partnership with RR Donnelley, dealmakers and professionals are maintaining this positive outlook. The Market Spotlight sheds light on the subsectors of the healthcare industry … Continue reading

President Elect and M&A: a cross roads or business as usual?

Nader Hasan (Toronto)By Nader Hasan (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
The election of Donald Trump as President of the United States adds to a cascade of political events that have surprised observers and may have profound effects on global flows of people, capital, and goods. While nothing is set in stone, Donald Trump and his administration have led us to believe that they are contemplating … Continue reading

A global overview of M&A activity: August 2016

Troy Ungerman (Toronto)By Troy Ungerman (Toronto) on Posted in Energy, Infrastructure, mining and commodities, M&A, Pharmaceuticals and life sciences, Technology and innovation
MergerMarket Group recently published its September edition of Monthly M&A Insider which reported on mergers and acquisitions activity around the world for the month of August 2016. More than two thirds into the year, August was no exception to the recent rather sluggish growth in M&A activity, especially compared to the record-breaking year for M&A … Continue reading

M&A activity in the healthcare sector is on the rise

Troy Ungerman (Toronto)By Troy Ungerman (Toronto) on Posted in M&A, Pharmaceuticals and life sciences, Technology and innovation
M&A activity in the healthcare industry has been on an upwards trend since our last update. Good Foundations: Building Healthcare M&A and Real Estate, a report by Mergermarket on deal-making trends in the industry, found that about 90% of the respondents expect healthcare M&A to rise over the next year. The value of healthcare deals in … Continue reading

M&A prospects in the healthcare industry

Sean Williamson (Toronto)By Sean Williamson (Toronto) on Posted in M&A, Pharmaceuticals and life sciences
RR Donnelley’s August 2016 VENUE Market Spotlight focused on the healthcare industry and the prospects for M&A activity in that space over the next 12 months. The report notes that there were 678 healthcare transactions in the first half of 2016 with an aggregate value of US$171.3 billion globally. These figures represent declines of 5% and … Continue reading

$40 billion in deals in one day: is “big pharma” getting bigger?

Sara Josselyn (Toronto)By Sara Josselyn (Toronto) on Posted in Corporate finance, Pharmaceuticals and life sciences
In a single day last week, $40 billion worth of deals were announced in the pharmaceutical industry.  The jaw-dropping, combined value of the announced mergers and acquisitions has turned heads, and has prompted analysts to question the impetus behind these deals. The increased activity may come as a surprise to some, as recent changes by … Continue reading

What can companies learn from PE sharks?

Jacob Cawker (Toronto)By Jacob Cawker (Toronto) on Posted in Corporate finance, Financial institutions, Pharmaceuticals and life sciences, Technology and innovation
Divestment is one strategy that a corporation can use to unlock funds for future growth and create long‑term shareholder value. According to a recent E&Y study, a successful divestment must meet three criteria: (i) it must create a positive impact on the valuation multiple of the remaining company; (ii) it must generate a sale price … Continue reading
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