Lexology May 2, 2024
Dealmaking in the life sciences sector comes with characteristics not typically seen in more traditional mergers and acquisitions (M&A). Deals often involve negotiating around complexities associated with both the unique nature of assets of life sciences companies and the unique industry ecosystem that brings these assets to life. Innovations—be they to drugs or medical equipment—can take years to develop and are not always guaranteed to succeed in the various clinical trial stages. These innovations can also involve multiple stakeholders from academic institutions, hospitals, startups, and established companies, creating a complex web of ownership issues, competing interests, and priorities.
Buyers also come with different views, perhaps wanting to license a product, do a collaboration, or undertake an M&A. Given these traits,...