Pharmaceutical & Biotechnology Industry

4Q 2023: Mergers and Acquisitions Trend Report

Industry Overview

• The Pharmaceutical and Biotechnology Industry provides low-cost service offerings from contract research organizations and contract manufacturing organizations. Rising government assistance, consolidation, and access to industry experts are expected to drive growth throughout the projection period.
• The Pharmaceutical and Biotechnology Industry is highly regulated by government bodies, most notably the Food and Drug Administration (FDA). Smaller companies often seek to be acquired by more established firms to gain assistance and access to resources and expertise.

Key Industry Trends

• Digitalization, data trends, and AI drive the transactions of the Pharmaceutical and Biotechnology Industry, enabling companies to improve drug development and patient care beyond the treatment of diseases, resulting in new revenue streams. This trend has become increasingly apparent in recent years and is expected to continue.
• As technology continues to advance, Biotech companies can revisit data from past trials and analyze data from current trials with the help of complex data solutions. This allows firms to provide more accurate diagnoses and develop new medicines and treatment paths for patients.

Recent M&A Transactions

Historical Performance

• Recent industry mergers have driven exponential growth.
• Over the past five years, industry revenue has increased at an annualized 4.7% to $17 billion.

Future Industry Growth

• Industry revenue is anticipated to increase 3.2% annually to $20.1 billion by 2028.
• With the emergence of AI, research will be completed quicker, leading to more discoveries.
• Companies aim to not only improve patient lives, but also focus on health and wellness, which is a large market that can be addressed.