Insights on Biopharma M&A from Louis Lehot
Author: Louis Lehot
Biopharma was the most active healthcare subsector for M&A in 2023.
Reflecting on a dynamic year in healthcare mergers and acquisitions, here are some takeaways from the action we saw in 2023:
Healthcare M&A saw $181B of transaction value in 2023, down 10%, largely due to rising interest rates and a gap in value expectations between buyers and sellers.
Biopharma emerged as a resilient force, as it accounted for 58% of deal value and 33% of transactions in 2023, which showcases its strategic significance within the industry.
Oncology was the most active therapeutic area for M&A, with 11 deals totaling $49B, which highlights the sector's continued focus on transformative treatments. Rare Disease and Immunology also saw notable activity this year.
Healthcare services and Health Information Technology (HCIT) experienced significant declines in transaction activity from 2022.
Despite a modest decline in 2023, large and mid-cap biopharmas have been strategically acquiring assets to close revenue gaps.
The challenging capital markets environment is expected to drive continued strategic transactions and cash-out deals as we step into 2024.
The new year 2024 holds promise for innovative collaborations and strategic moves in the healthcare sector.
The information in this post comes from this Leerink Partners article.
Discover more about Louis Lehot and explore additional professional insights on his website https://louislehot.com
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