Realising value from M&A, alliances and collaboration

In today's economic climate, it is more challenging than ever for pharmaceutical and biotech companies to deliver on shareholder value. The loss of patent protections and a shortfall in the pipeline to replace lost sales, combined with the general decline in return on research & development and sales and marketing, has left companies searching for alternative methods of delivering maximum returns to shareholders.

Many are looking to transactions such as mergers & acquisitions, divestitures, and licensing/collaborations to enhance value during these challenging times.

Recent transaction activity in the industry includes:

  • Acquisition of biotech companies to help fill pipeline needs
  • Acquisitions in emerging markets to diversify away from the domestic market and into growth countries
  • Acquisition of specialty pharmaceutical companies to move away from the blockbuster drug model
  • Acquisition of generic companies to diversify away from the branded/ethical market
  • Divestiture of non-core businesses/products
  • Maximising intellectual property as companies are now licensing out non-core or secondary technology or intellectual property in an effort to fund priority programmes
  • In-licensing/collaborations in an effort to find their next product success

PwC can assist with transactions

PwC is well positioned to assist you with all of your transaction needs. We have a strong track record of working with clients across all segments of the pharmaceutical and life sciences industry. Our specialists offer a full range of services, from inception to post-deal integration. And our global network, in combination with our in-depth industry knowledge, enables us to be constantly in touch with the markets and to spot opportunities and assemble teams to execute a deal as the need arises.

Our professionals are able to help not only with the accounting and tax considerations that deals create, but with a wide range of planning and integration concerns related to operational, systems and regulatory issues.