Global life science deals reached £108.7 bn from Jan-June 2015

94% of life sciences companies are planning an acquisition in the next year with more than two-thirds targeting personalised medicine according to global a report by Reed Smith

A global study of 100 senior executives at life sciences companies by global law firm Reed Smith, in partnership with Mergermarket, reveals that 94% are planning to make an acquisition in the next year, with a further 87% expecting these to be cross-border transactions.

The Life lines: Life sciences M&A and the rise of personalised medicine report, explores the main drivers behind the pursuit of cross-border life sciences deals, the challenges faced in executing those deals, and how advances in personalised medicine may change the face of the industry.

The report stated that the first six months of 2015 saw £108.7 billion worth of deals in the life sciences sector – an increase of almost 53% on last year.

James Wilkinson, Reed Smith corporate partner, London said: “Most of what we see has a cross-border nature to it: companies striving for growth in a saturated marketplace are looking to develop their portfolios, diversify their products, move into new markets and restructure their businesses through divestments.”

Another trend identified in the survey is the growing role of personalised medicine in life science companies’ strategies.

70% of respondents cite businesses that have a focus on personalised medicine as an area where they will increasingly look to make acquisitions.

The report showed that despite a continued focus on the development of broad application pharmaceuticals, companies recognise that personalised medicine offers the promise of higher returns even though the patient population is much smaller.

Carol Loepere, Reed Smith partner in Washington DC and chair of Reed Smith’s Life Sciences Health Industry Group, said: “The future of medicine is to have the right medicine for the right patient and the right dose at the right time.”