Biotechnology, pharmaceutical and medical device companies are likely to pick up the pace of dealmaking in 2017, according to a recent survey of life sciences industry leaders conducted by law firm Haynes and Boone, LLP.
According to the survey, which was conducted in late 2016 and early 2017, the number of life sciences companies pursuing an initial public offering (IPO) or M&A transaction is likely to increase in 2017, following a deceleration of life sciences deals in 2016.
Haynes and Boone surveyed dozens of board members and senior executives at leading life sciences companies, investment banks, venture capital firms, private equity funds, hedge funds and other investors, who offered a number of key predictions for 2017:
- A majority of respondents believe the leading biotechnology indexes, such as the Nasdaq Biotech Index, will improve,
- A sizable majority of those surveyed believe that the public markets will support early-stage, pre-commercial biotech, pharmaceutical and medical device companies,
- The vast majority believe that young, promising life sciences companies will be more likely to pursue an M&A exit rather than an IPO,
- Respondents believe that oncology and digital medicine will be the hottest sectors,
- A majority of those surveyed predict a surging wave of industry consolidation in 2017.
“Several clear trend lines emerge from the survey, including that life sciences industry leaders are optimistic about the coming year,” said Rick Werner, co-chair of the firm’s Capital Markets and Securities Practice Group.
“Independent life sciences companies, particularly those in hotter sectors, should enjoy momentum in 2017 as they seek growth in the public markets or through M&A,” added New York Partner Greg Kramer, who advises emerging life sciences companies.
To learn more about Haynes and Boone’s experience representing emerging biotechnology, pharmaceutical and medical device companies, please contact Rick Werner, Esq. at rick.werner@haynesboone.com or Greg Kramer, Esq. at greg.kramer@haynesboone.com.