Back To Business: Deal-Making On The Other Side Of COVID-19

COVID-19 has introduced new challenges (and more attorneys) into the biopharma deal-making environment, but experts say the fundamentals for deal activity point toward a rebound. Companies that adapt quickly to changes – in communication, due diligence and deal structure – will make successful connections in a time of social distancing.

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Things often look rosier in the rear-view mirror, but it’s hard not to feel nostalgic about 2019. Biopharmaceutical innovation commanded a premium, to say the least, and company valuations last year helped create an all-time high in total deal value for the sector, at over $350bn globally. In the first three months of 2019, there were $147bn worth of transactions globally, compared to about $22bn during the first three months of 2020, Arda Ural, Americas Industry Markets Leaders for Health Sciences and Wellness at Ernst & Young LLP (EY), told In Vivo. That precipitous drop is not entirely due to the onset of the global coronavirus pandemic, but then, it did not help matters.

Biopharmaceutical company valuations looked grim in March 2020, as did the major US stock indexes; both have since regained a...

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