COVID-19 And M&A: Multiple Scenarios In Store As World Adapts

Risks And Opportunities Emerging

The coronavirus pandemic could dull pharma M&A activity in the short-term as companies hoard cash and prioritize core activities. But experts say stress in the system could potentially push some firms to cull surplus assets or seek financial/strategic investors, amid a generally tough funding environment. Private equity investors may also find attractive investment opportunities to pursue.

M&A
COVID-19 Could Dull M&A But Systemic Stress Could Also Trigger Transactions • Source: Shutterstock

The coronavirus pandemic has battered businesses across sectors, including pharma. Supply chain disruptions, pain on the logistics front and commercialization challenges are all playing out across geographies.

The resultant general strains in the system and a tough funding environment, compounded by high leverage at some smaller drug...

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