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A wave of big-ticket transactions by global pharmaceutical companies drove life sciences M&A activity to its fourth-largest year on record in 2019, with aggregate deal value in the pharmaceutical, medical and biotech industry reaching $234.2 billion; and Synthorx’s sale to Sanofi $2.5 Year of the Life Sciences Mega-Deals.
But it wasn’t all carve outs and concerned investors – even with the headwinds in the industry and beyond, there were still several traditional public M&A deals involving biotechnology or medical device companies, as large pharmaceutical companies continued to have cash to deploy for acquisitions.
For example, early in 2021, Zimmer Biomet Holdings announced that it would spin off its spine and dental businesses into a new publicly traded company as a way to “optimize resource allocation” among its remaining businesses. closing friction. billion (including earnouts). And, by some measures, almost 75% of private?target
Despite the mixed success of these campaigns, their prevalence has led public company boards to focus on activist preparedness –particularly as private equity sponsors increasingly team up with, or quickly follow, activists advocating for a sale.
Traditional terminal exit routes for private equity-backed companies are to larger strategic acquirers (often public companies) and IPOs, where a private company becomes publicly traded. However, the type of larger company that would be interested in buying physician practice management (PPM) companies has been unknown.
By 2030, more than 190 commercial drugs will lose patent exclusivity , putting at risk $236 billion in Big Pharma sales. The sale of Poseida Therapeutics, a cell and gene therapy-focused company, for up to $1.5 billion sale of Carmot Therapeutics, a promising Swiss GLP-1 drug developer, further underscores the sectors vitality.
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