June 18, 2015
inVentiv Health, Inc.
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Annual Dealmakers Report Released at 2015 BIO International Convention Captures Expectations from Buyers and Sellers of Biopharmaceutical Assets and Highlights Key Opportunities
Philadelphia – June 18, 2015 – A survey of biopharmaceutical dealmakers by Campbell Alliance, the consulting firm of inVentiv Health, suggests that 2015 will set a new record for mergers and acquisitions and licensing of biopharmaceutical assets. The survey also revealed early signs of a potential slow-down in licensing of assets.
This is the seventh year that Campbell Alliance has surveyed dealmakers to provide a forward-looking glimpse of what the rest of the year will hold and identify areas of greatest opportunities for buyers and sellers. A report on the survey was released during a Super Session today at the BIO International Convention in Philadelphia, “Riding the Bull Market: What’s in Store for Biotech Dealmakers in 2015?”
“The level of dealmaking activity last year was the highest it has been since 2009 and activity in 2015 is set to surpass it,” said Neel Patel, Vice President, Campbell Alliance. “But this time, M&A activity is being fueled by small and mid-cap biopharma buyers, who are flush with cash. And the details of what we found across the sector should be of interest to anyone evaluating buying or selling an asset in 2015.”
Patel said buyers find themselves in a highly competitive environment while sellers benefit from well capitalized buyers and more options than in the past.
“The message for sellers is that the market continues to create options,” said Patel, who moderated the BIO Super Session. “Sellers are able to retain assets longer as a result of the better financing environment, the emergence of ‘new’ buyers and options to commercialize through specialty indications and contract commercial services.”
He said that buyers face a tough environment marked by increased competition for assets and the need to negotiate with sellers who have options. To access the assets they want, buyers may need to position themselves more aggressively through M&A with earn-outs or outright acquisitions versus licensing. Patel said the window of robust financing (cheap debt and access to public equity), tax inversions and pricing power may close over time.
The survey also found:
Additional information about Dealmakers' Intentions 2015, including access to a white paper summary of the results, is available here: inVentivHealth.com/CampbellAlliance/Dealmakers.
About Campbell Alliance
Campbell Alliance is the Consulting arm of inVentiv Health and an industry leader in biopharmaceutical consulting. The firm's clients include all of the world's top 20 pharmaceutical companies, as well as numerous emerging and midsize firms. Campbell Alliance is organized into five Practice Areas – Commercial Excellence, Commercial Strategy, Market Access, Medical and Corporate Development – each of which offers a range of services to a critical area of the pharmaceutical and biotechnology industries. Each of our Practice Areas has a dedicated consulting team whose members are highly specialized and offer deep expertise in their chosen areas. From its 13 office locations, the firm serves clients throughout North America, Europe and Asia. For more information on Campbell Alliance, please visit inVentivHealth.com/CampbellAlliance.
About inVentiv Health
inVentiv Health is a top-tier professional services organization that accelerates the clinical and commercial success of biopharmaceutical companies worldwide. Through the services of a global Clinical Research Organization (CRO) and a unique Contract Commercial Organization (CCO), inVentiv Health helps clients improve performance to deliver much-needed therapies to market. With 13,000 employees providing services to clients in 70 countries, inVentiv Health designs best practices, processes and systems to enable clients to successfully navigate an increasingly complex operating environment. inVentiv Health, Inc. is privately owned by inVentiv Group Holdings, Inc., an organization sponsored by affiliates of Thomas H. Lee Partners, L.P., Liberty Lane Partners and members of the inVentiv Health management team. For more information, visit inVentivHealth.com.
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