Pharmaceutical & Biotechnology Industry

Q3 2022: 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 has gained a lot of attention from the COVID-19 pandemic, resulting in increased social assistance legislation, and rapidly accelerating drug development.

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
• 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 plan new medicines and treatment paths for patients

Recent M&A Transactions

Historical Performance

• The COVID-19 pandemic had a positive overall impact on the demand for trials and pharmaceutical products.
• Over the past five years, industry revenue has increased at an annualized 9.5% to $11.2 billion.

Future Industry Growth

• Industry revenue is anticipated to increase 7.5% annually to $24.4 billion by 2026.
• Strengthening total health expenditures and research and development (R&D) spending, with governmentbacked assistance, is expected to drive growth in the Pharmaceutical and Biotechnology Industry.
• Rare diseases are gaining more attention, and specialty pharmacies are growing nationwide.