PLG Journal Issue 23: September 2015
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Subscription to the Journal is included within the PLG Membership package.
Members: login to access current and past issues of the Business Development & Licensing Journal.
As a biopharmaceutical company with attractive proprietary compounds, becoming a potential M&A target for larger pharmaceutical companies is eventually a standard business scenario. Even more so when the company possesses a strong underlying proprietary drug discovery platform and related expertise. MorphoSys has prospered in such a situation through many years although the acquisition of the Company was, according to some external spectators at least, constantly just around the next corner.
Since different types of deals (co-development, co-commercialisation, acquisitions and divestments) have different resource requirements post-signing, business development professionals should take this into consideration when negotiating a deal. The best means to accomplish this is to involve an alliance management professional from the start.
Deal-making in Volatile Markets
2015 life science licensing and acquisitions will inevitably conclude with record-setting overall transaction volumes, dominated by mega-deals driven by strategic goals of scale and capital efficiency. Emerging and mid-size deals however, tend to be driven by considerations of who, in terms of organisational capacity and capital, is the best owner of an asset at a given stage of scientific, clinical or commercial development. Large cap global M&A is impacted by monetary policy, regional economic outlook and institutional capital flows. On the other hand, emerging and mid-size deals require sophisticated project investment, risk management and option valuation skills.
This month, some companies seem determined to prove that not all of Europe closes for business and disappears off to the beach during August! Very deal busy and present in the headlines were AstraZeneca, Sanofi and Shire with a range of deals, bids and acquisitions.