The future of healthcare depends on innovation, yet the traditional path to growth in pharma and life sciences and research and development can no longer keep pace with demand. To meet a 10% growth rate, the top 10 pharmaceutical companies would have to generate approximately 700 NMEs or BLAs over the next 10 years, or about 70 approvals per year. But with an FDA approval rate hovering around under 30 per year for the past five years, the competition for pipeline assets is fierce.
With so much at stake, it is not enough to simply evaluate opportunities as they arise; your firm must proactively identify the right opportunities best matched to your assets and ambitions, and pursue strategies that look beyond conventional licensing or M&A deal structures. As a recognized leader in life sciences transaction support, L.E.K. can help you identify and evaluate traditional opportunities, and also explore new possibilities and innovative partnership structures such as option funds, royalty monetization and asset swaps.
What we do
We are a leader in transaction support and have helped our clients execute more than $120 billion in life sciences deal value. Our support throughout the process includes:
- M&A strategy: We work with stakeholders to build consensus on the rationale for pursuing inorganic opportunities, and to develop a formal M&A process and organizational structure to foster deal identification, evaluation and execution.
- Acquisition screening: After understanding the organizational vision, as well as key client needs and priorities, we use a collaborative and systematic approach to distill a broad list of potential products, companies and services to a prioritized list of targets that best fit our clients’ needs. We then work with them to devise strategies to maximize the value of these potential partnerships.
- Commercial and vendor due diligence: We map the market and competitive landscape, evaluate the pricing and market-access environment, test the value proposition and forecast potential revenues, arriving at an analysis that articulates both the risks and upside benefits of acquiring products, services and/or companies.
- Negotiation support: Some of the best opportunities often feature tight timelines and a constant stream of analytical complexities. Our teams have both the experience and the flexibility necessary to guide you through the analytical intricacies of different deal structures and offer components so that you can make transaction decisions with both confidence and the requisite speed.
- Royalty monetization: We have supported dozens of royalty monetization deals, including several of the largest royalty monetization deals ever executed. Our team provides an experienced and independent third-party review of the product and an evidence-based revenue forecast, as well as support during investor calls. This offering allows many of our clients to monetize future revenue streams and reinvest the proceeds back into identifying and developing the next generation of treatments.
- Post-merger integration: Once a transaction is executed, maintaining business stability and ensuring a seamless transition are critical and often highly complicated. We work with clients post-close to ensure that the integration process is efficient and smooth, positioning the company and its team for long-term success.
Examples of our work
To learn more about how we help our clients, please refer to these case examples:
- Supported a pharmaceutical client to develop and manage a complex integration following a transformational merger