Life Sciences M&A Report: Half-Year 2023

In the first half of 2023, the slowdown in terms of global life sciences M&A deal-making experienced in the second half of 2022 has continued to show its effects.

Anticipated as a year of recovery, 2023 was expected to leverage M&A as a means to adapt to rapidly changing market conditions. However, while it remains to be seen how the full year will unfold, the challenging economic landscape with rising interest rates and high inflation has so far resulted in continued subdued deal activity. The number of deals has declined moderately, whereas notably fewer mega-sized transactions were completed.

Overall, M&A are still considered a popular choice for the life sciences industry to bridge pipeline gaps and drive company growth. Looking towards the future, it is expected that the pharmaceutical industry will seek to fill potential gaps resulting from the expiring patents of numerous high-selling therapeutics in 2030. Concurrently, the lack of opportunities in the IPO market is driving small- and mid-sized biotechs to seek potential buyers, indicating that divestitures are likely to play a more prominent role in the future and M&A deal activity will rebound.

Read our Life Sciences M&A Report for more information and statistics on the latest M&A activity in the biotechnology and digital health sectors. The report is published by Venture Valuation based on data taken from Biotechgate.