Going Into 2024, PWC Predicts Healthy Atmosphere For M&A

Quick accretion may be more important to acquirers than revenue growth potential, the firm’s annual outlook states. A variety of pressures will increase emphasis on strategic deal-making.

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PWC anticipates an uptick in deal-making in 2024

In its annual look ahead to the life sciences deal-making environment, PWC thinks 2024 will bring a continuation of what the biopharmaceutical sector has seen in 2023: an uptick in deal volume and valuations as the return to normalcy from the COVID-19 pandemic continues. The consulting firm expects between $225bn and $275bn of M&A activity in 2024, across all subsectors of the life sciences, but also predicts a better financing environment with interest rate risk beginning to moderate.

Looming patent expirations will continue to drive high-spending companies’ willingness to seek external innovation as a source for growth, the Pharmaceuticals and Life Sciences Deals Insights: 2024 Outlook report says

Key Takeaways
  • PWC anticipates a healthy environment for life sciences M&A activity in 2024, but thinks biopharma companies will emphasize quick accretion as much or more than revenue growth potential.

  • The metabolic/obesity space is emerging as a strong second to cancer as a top area of emphasis in deal-making, and PWC expects that trend to continue in 2024

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