Life Sciences perspectives

The life science industry broadly has been extremely active in 2020 and 2021.

Video transcript

So I think if we begin to zoom in into the life science deal market, really, I think since 2019, we've just seen a significant uptick in deals across life sciences. There was a little bit of a pause when I think COVID hit. Although you could argue maybe the pharmaceutical industry didn't really stop during the beginning of the pandemic. It really kind of kept going with companies like Gilead doing a ton of deals. But if you look at the data, really at the deal volume, the pharmaceutical industry, the life science industry broadly in diagnostics, life science tools, you name it, really for the most part has been extremely active in 2020, 2021. And I think we expect competition. And there's just this context of innovation that we're under across life sciences really to drive the deal volume there, particularly in the pharmaceutical industry.

Being first to market is such a key driver of value for these assets that as companies think about sort of preserving their future revenues and needing to build their pipelines, that's going to continue to drive deal activity. That said, there have been some events, I think in the last couple years, that are maybe to think about how they go about doing those deals a little bit differently. We've had more than a few conversations with big pharma, big biotech on the acquisition of cell and gene therapy companies, where those integrations just haven't gone as well. And think that's going to have a little bit of a rethink on their approach. Full M and A may not be as readily on the table for them.

Jeff Stoll, PhD

Jeff Stoll, PhD

Principal, National Strategy Life Sciences Leader, KPMG US

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