It’s poised to be a big year for mergers and acquisitions (M&A) in the healthcare industry.
Lowered inflation, the anticipation of more interest rate cuts, and the expectation that the Trump administration will ease up on antitrust regulations have created a more favorable dealmaking environment than we’ve seen since 2021’s boom, experts said.
“We do expect to see a tremendous amount more of M&A than we’ve seen in the previous years, but each subsector has a different flavor, and each subsector’s reasoning for having a boom in M&A is different,” Kristin Pothier, principal and healthcare and life sciences sector leader at accounting firm KPMG, told Healthcare Brew.
Where the action will be. One of the biggest subsectors for M&A activity this year will be pharmaceuticals, Pothier projected.
A number of big pharma companies have drugs with patents expiring in the next few years, she said. Because of that, the companies will be looking to acquire smaller players with promising drug candidates to replace that revenue.
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