KBS - Pharmaceutical Consultancy and Life Sciences - Market Insight

MARKET INSIGHT

M&A ACTIVITY IN THE PHARMA CONSULTANCY SECTOR

M&A activity has grown and is forecast to continue to do so. The pharma consultancy space has displayed strong resilience - despite regulation, increased interest rates and growing competition. Due to the sector’s multi-faceted needs, private equity, akin to trade investors, can leverage consulting companies’ skills, knowledge and expertise to accelerate drug development. For example, Kester Capital made its fifth acquisition in the space, acquiring Map Patient Access. MAP is a leading provider of market access-consulting services to the pharma-ceutical and biotech sectors. Sciris, meanwhile, acquired UK-based Source Health Eco-nomics to obtain a wider market reach in the space. Key players who demonstrated strong M&A activity in the past couple of years were pre-dominantly aggressive mid-sized firms. However, this trend has recently shifted as ‘big pharma’ has started to heavily invest and focus in the pharma services space.

Revenue PHARMACEUTICAL PRODUCT & PREPARATIONS MANUFACTURING IN THE UK Total value (£) and annual change from 2011 - 2009. Includes 5 - year outlook.

90%

60

Forecasted

60%

48

2024 Annual Revenue (£bn) 40 2024 Change 4.2%

30%

36

0%

24

-30%

12

-60%

0

2014

2028

2012

2016

2018

2020

2022

2024

2026

SOURCE: IBISWorld