COVID-19 is affecting the biopharma industry in myriad ways, including short-term disruption to R&D programs and clinical trials, but also causing complications in the commercial arena and to supply chains. This is evident in the near-absence of M&A transactions completed through the first half of the year, although an extremely healthy environment for fundraising via public offerings and venture capital provides balance and opportunity.
In August 2020 Informa Connect and Pharma Intelligence partnered to conduct an online survey to gauge perspectives around deal-making during COVID-19 and the commercial ramifications of the pandemic. This report, based on the responses of 173 executives, business development, and licensing professionals, reveals how partnering discussions have evolved through necessity, and proposes the future direction of deal-making, a strategic imperative for any successful company.
Daniel Chancellor, Thought Leadership Director at Pharma Intelligence, introduces the report and offers insights throughout.
Explore or download the report by clicking on the cover image above (or here).
Key Insights
- The pandemic has had a negative effect on the ability to conduct and execute meetings and deals for approximately half of respondents.
- Nevertheless, 90% indicate a strong bias towards virtual interactions in the new normal for deal-making.
- The deal-making community is generally split on how long current levels of investment via IPOs, funds and governments can be sustained for.
- A stronger consensus emerges for acquisitions, with 50% of respondents suggested it would be at least another 12 months before the biopharma industry returned to historic levels.
- Respondents were agnostic as to the best way to unlock value via deal-making, with 75% indicating that the preferred deal structure depends on the asset and parties involved.