BioPharma, Pharma

#BIO2015: What life sciences sectors are ripe for M&A?

Life sciences M&A remains bullish - 2015 will likely outpace 2014 in terms of deals. But which sectors are most lucrative? CNS, pain and women's health, a new report from Campbell Alliance finds.

In this bullish life sciences market, which sectors are most ripe for acquisition? Which assets will have a tougher time to sell?

report, released at this week’s BIO International Convention in Philadelphia by management consultancy Campbell Alliance, laid out a number of interesting insights on the M&A environment in the life sciences. Study author Neel Patel discussed the results.

Most notable was the firm’s breakdown of demand by sector. CNS therapies topped the list of most lucrative acquisition targets — the growing Alzheimer’s market is clearly one reason for this. Close behind was pain — not surprising either, given the huge need these days for safer opioids and other abuse-deterrent options.

“The areas where there’s perhaps more opportunity to get assets on the cheap because there are more of them are antivirals, ophthalmology and GI,” Patel said.

It’s a little odd that antibiotics are at ground zero, given the pressing need for them. Orphan products have dropped down a bit, Patel said, when compared to cancer vaccines and antibody drug conjugates.

“But it’ll be interesting in a few years to see where stem cell therapies and gene therapy wind up, given all the attention they’ve been getting,” Patel said. “Those technologies are approaching an inflection point.”

“When we talked to companies about hot areas for licensing, it’s largely driven by areas affiliated with oncology,” Patel said, as can be seen below:

 

Acquisitions are much more likely in the preclinical or Phase III – though it favors sellers in the former and buyers in the latter.

In summary? The life sciences sector may or may not be in a bubble, but it’s got its own bullish and bearish subsectors. However, while 2014 was a good M&A year, but 2015 will likely be better.

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