We used CB Insights data to analyze pharmaceutical companies’ actions ahead of acquisitions.
Pharmaceutical companies have long used M&A and licensing transactions as a means of bolstering their pipelines. But the use of this approach is on the rise. The share of revenues generated from healthcare developments outside of big pharma increased from ~25% in 2001 to ~50% in 2016, according to McKinsey.
In addition, large pharma companies have also used investments to gain insights into startups’ technologies, and this investment activity sometimes leads to a subsequent partnership or acquisition deal.