Now in its eighth year, the inVentiv Health Consulting (formerly Campbell Alliance) Dealmakers' Intentions Study is the only forward-looking measure of dealmaking activity in the pharmaceutical and biotech industries. While there are many quality sources of information that look historically at past deal trends, this survey offers a prospective view of the partnering and licensing landscape for the year ahead.
In the first quarter of 2016, inVentiv Consulting surveyed 144 licensing professionals, capturing expectations for deal activity, supply and demand for assets at different stages of development, and approaches to valuation. The results of that survey provide a forward-looking view into what dealmakers anticipate will happen in licensing and acquisitions over the upcoming year. The 2016 Dealmakers' Intentions Study notes that buyers' demand for preclinical and phase III assets overshadows supply across several therapeutic areas, which will likely result in significant increase in asset value this year. The study also found that dealmaking is likely to return to historic norms, or slightly higher. Prices have increased and the margin for error has narrowed, but there are still ample opportunities. Traditional M&A will see slowing growth or be flat, while deals shaped as acquisitions with earn-outs are expected to continue to increase as buyers seek to push more risk onto sellers. For sellers, the market continues to generate options for value creation at different phases of development, with more room for a supply-demand match before phase III. But for buyers, in order to secure the assets they most want, they might need to be more aggressive in crafting acquisitions with earn-outs, creative licensing agreements and more.
Dealmakers' Intentions presents conclusions that are crucial for C-suite executives, as well as executives responsible for dealmaking strategy and the business development function.
A summary of the study results was presented during our Super Session at the BIO International Convention. Pharmaceutical Executive magazine also hosted an editorial roundtable to highlight the study.
Download a white paper summarizing the survey results.
However, the results of this study are much more impactful and applicable to any company's business situation when they are delivered in person.
Request that an inVentiv Health Consulting team member present the full survey results to your organization and discuss its implications for your business.
Results from prior Dealmakers' Intentions studies can be found in our Landmark Studies section.