Go Back

We Take Success Personally.

At Weaver, we care about success. But it’s not just the success of our firm or clients that matters to us; it’s the success of our people who make the day-to-day of this business possible. That’s why we’re passionate about bringing together talented individuals and giving them the tools they need to succeed. We lean on each other as members of the Weaver family, understanding that our culture is driven by our collective values, character and efforts. Our goal is to balance both high development with high performance in order to meet the long-term goals of each individual, team and our firm, and every person plays a part.

Weaver

Business Services

Beyond the Numbers: The Rebound and Current Financial State of the Biopharma and Med Tech Industries

January 12, 2022
acquisitions
biopharma
drugs
FDA
+more
MarketScale

 

COVID-19 rocked the world in most industries, but particularly for biopharma and pharmaceuticals, which were at the forefront. Tyler Ridley, Senior Manager of Valuation Services at Weaver, joined this episode of Weaver: Beyond The Numbers Podcast with Weaver hosts Howard Altshuler, Partner-In-Charge of Real Estate Services, and Rob Nowak, Tax Partner with Weaver, to discuss the rebound and current financial state of the biopharma and med tech industries.

Since the pandemic, the spike in healthcare initial public offerings (IPOs) and performance solidified the IPO pathway and exit strategy for life science investors. “I think it’s a shift in the narrative in biopharma and medical technology from profit-driven industries characterized by nefarious price gouging executives to more strategic industries that really came to the aid of the government and society more broadly in a time of crisis,” Ridley added.

While there were deal drop-offs in 2020 because of factors like the lack of elective surgeries, there was an increase in 2021 deals for digital therapeutics and delivery of care models. MedTech is just one example of this. “MedTech’s deal value has also exceeded 2020 totals so far and is on pace to be the highest value since 2017 despite a decline in total deal volume which indicates that the value per deal on average is increasing,” stated Ridley.

The M&A market has been muted this year, which is related to concerns with regulatory action to curb pricing power and lower drug prices. Risk tolerance to acquire other companies is not as favorable as it is to license their technology.

As for M&A activity for the rest of 2021, valuations are high, making it difficult for executives to gain acquisitions. The turbulent regulation environment combined with the lack of an FDA head is also hard to cope with. Additionally, the current supply chain issue may result in vertical acquisitions boosting M&A activity.

For more podcasts, whitepapers, and thought leadership on this topic, visit weaver.com.

Recent Episodes

social work
View episode

Education, Empathy, and Social Justice Shaping the Future of Social Work

Social work is crucial for addressing social issues like poverty, inequality, and injustice. With mental health challenges on the rise, understanding the role of social workers is vital for providing the necessary support to vulnerable populations. According to the National Association of Social Workers, over 700,000 professionals in the U.S. alone are dedicated to…

intergenerational
View episode

Intergenerational Diversity and Inclusion Create a Harmonious Workplace

With the rise of diverse generational perspectives in the workplace, understanding these dynamics has become crucial. A recent episode of The AppleOne Show by ActOne Group dives into this topic, exploring the unique experiences and insights from Baby Boomers, Gen X, and Gen Z. Research shows that fostering intergenerational understanding can significantly improve workplace engagement…

career in tech
View episode

Continuous Learning & Networking Can Help Land you a Career in Tech When You’re Not a “Techie”

Navigating a career in the tech industry without a traditional tech background might seem daunting, but it’s entirely possible and increasingly relevant in today’s evolving job market. With tech becoming more integral to various industries, understanding how to pivot into this field is crucial.  According to the Bureau of Labor Statistics, employment in computer…